metamorphosis - cdl...metamorphosis has dramatically transformed our business landscape and our...

METAMORPHOS I S

Sustainabi l i ty Report 2009CITY DEVELOPMENTS LIMITED

CDL’s co rpo ra te s t r a tegy o f evo l v i ng i n

an t i c i pa t i on and respond ing to new cha l l enges

has made us a l ead ing p rac t i t i one r o f co rpo ra te

soc i a l r espons ib i l i t y i n S ingapo re. Ou r

me tamorphos i s has d rama t i ca l l y t r ans fo rmed

ou r bus i ness l andscape and ou r engagemen t i n

t he soc i a l and env i ronmen ta l a rena has b rough t

f o r t h much pos i t i ve impac t .

Th rough ou r a f f i rma t i ve ac t i on as desc r i bed

i n t h i s r epo r t , j o i n us i n ou r j ou r ney as we

con t i nue to morph and p rog ress i n to new s t ages

o f advancemen t .

02 MESSAGE FROM THE MANAGING DIRECTOR

06 CHAPTER 1

CDL – LEAD ING THE INDUSTRY, CONSERV ING THE ENV IRONMENT, CAR ING FOR THE COMMUNITY

14 CHAPTER 2

CSR ENGAGEMENT FOR THE BUS INESS

38 CHAPTER 3

CORpORATE GOVERNANCE AND R ISK MANAGEMENT

46 CHAPTER 4

SUSTA IN ING THE ENV IRONMENT

62 CHAPTER 5

EMpOWERING OUR pEOpLE

72 CHAPTER 6

DEVELOp ING WITH THE COMMUNITY

80 SUMMARY OF CDL PERFORMANCE DATA

81 GRI CONTENT INDEX

82 UN GLOBAL COMPACT INDEX

83 INDEPENDENT ASSURANCE STATEMENT

CONTENTS

“Recognisably, CDL is still a novice in the practice of CSR. However, we are fully committed to sustaining our efforts, elevating our standards and practices and exploring innovative ways to reach new levels of excellence in CSR.”

Beyond the repo r t , we have ded i ca ted much e f fo r t t o sha r i ng ou r expe r i ence a t CSR- re l a ted con fe rences, sem ina r s and even t s. I t i s hea r t en i ng to see t ha t more co rpo ra t i ons i n S ingapo re a re t ak i ng a keen i n te res t i n CSR and p l ac i ng g rea te r emphas i s on t he impor t ance o f CSR d i sc losu re. We a re encou raged by t he p rog ress and we w i l l con t i nue to wo rk c lose l y w i t h non-gove r nmen ta l o rgan i sa t i ons such as S ingapo re Compac t f o r CSR to f u r t he r p romote t he cause.

Recogn i sab l y, CDL i s s t i l l a nov i ce i n t he p rac t i ce o f CSR. Howeve r, we a re f u l l y commi t t ed to sus ta i n i ng ou r e f f o r t s, e l eva t i ng ou r s t anda rds and p rac t i ces and exp lo r i ng i nnova t i ve ways to reach new l eve l s o f exce l l ence i n CSR.

I n t e r na l l y, we have a l so fo rmed ou r CSR Commi t t ee and t aken g rea te r s t eps to rev i ew and s t r uc tu re CSR w i t h i n t he Company. Th i s way, we can be t t e r i n t eg ra te CSR w i t h i n t he bus i ness p rocesses, enhance ou r cu r ren t capab i l i t i e s and f ac i l i t a t e t he p l ann ing o f CSR i n i t i a t i ves and t a rge t s fo r sus ta i nab i l i t y. To enab le us to be t t e r unde rs t and ou r CSR pos i t i on , we he ld a wo rkshop, b r i ng i ng toge the r a l l pa r t s o f ou r bus i ness, t o i den t i f y t he key CSR r i sks and oppo r tun i t i e s t ha t we f ace as a company. F rom th i s wo rkshop, we have se t ac t i on p l ans to f u r t he r m in im i se ou r CSR r i sks and bu i l d on ou r oppo r tun i t i e s. The re has a l so been ac t i ve s t akeho lde r engagemen t t h roughou t t he yea r i n ou r con t i nued e f fo r t s t o re f i ne and deve lop ou r CSR p rog rammes.

I n ou r con t i nuous pu r su i t t o improve ou r bus i ness pe r fo rmance and to be t t e r i n t eg ra te CSR i n to ou r bus i ness, we have a l so ach ieved the success fu l i nco rpo ra t i on o f t he ISO 14001 Env i ronmen ta l Managemen t Sys tem fo r Co rpo ra te Managemen t and Ope ra t i ons cove r i ng a l l HQ ac t i v i t i e s, such t ha t a l l pa r t s o f ou r bus i ness a re now cove red by ISO 14001. We have a l so ga ined S ingapo re Qua l i t y C l ass ce r t i f i ca t i on t ha t i s based on an i n te r na t i ona l l y -benchmarked bus iness exce l l ence f r amework wh ich encompasses seven key a reas o f t he bus i ness ope ra t i ons.

I am g l ad to repo r t t ha t we have me t many o f ou r t a rge t s se t f o r 2008. Fo r i n s t ance, ou r co l l ec t i ve e f f o r t i n ene rgy conse r va t i on has l ed to a 5% reduc t i on i n to t a l ene rgy use i n 2008. I n ou r eve r-evo l v i ng CSR jou r ney, we a re spu r red to con t i nue re f i n i ng ou r CSR p rog rammes, me thodo logy and measu remen ts, so t ha t CDL can morph i n to an even be t t e r and more sus ta i nab le company t ha t i s o f va l ue and a sou rce o f p r i de i n t he commun i t y.

Kwek Leng Joo Manag ing D i rec to r

MESSAGEFROMTHEMANAGING DIRECTOR

Dear S takeho lde r s,

I n 2008, t he g loba l f i nanc i a l c r i s i s c i t ed by some as poss ib l y t he wo rs t t he wo r l d has encoun te red s i nce The G rea t Dep ress ion i n 1929, has had a devas ta t i ng impac t on t he economies a round the wo r l d . By mos t coun t s, a recove r y i n 2009 seems un l i ke l y.

Many co rpo ra t i ons have repo r ted weake r f i nanc i a l pe r fo rmance i n 2008 and p rospec t s fo r 2009 rema in unce r t a i n . Thus, i t becomes even more cha l l eng ing fo r co rpo ra t i ons to no t l ose s i gh t o f t he i r Co rpo ra te Soc i a l Respons ib i l i t y (CSR) commi tmen t s when i nco rpo ra t i ng cos t -cu t t i ng measu res w i t h i n t he Company.

The on-go ing f i nanc i a l and soc i a l impac t w i l l con t i nue to un fo ld and wha t i s ce r t a i n i s t ha t co rpo ra t i ons and commun i t i e s a l i ke mus t b race t hemse l ves and suppo r t each o the r du r i ng t hese cha l l eng ing t imes. The soc ie t i e s wh ich do so w i l l be t he ones t ha t w i l l emerge fundamen ta l l y s t ronge r and recove r f as te r t han t he o the r s.

We recogn i se t ha t du r i ng t hese d i f f i cu l t t imes, t he l a rge r commun i t y has p ress i ng needs and requ i r e ou r suppo r t more so t han eve r. CSR i s an i n teg ra l pa r t o f ou r v i s i on and m iss ion and du r i ng t h i s economic recess ion , we rema in s tead fas t i n ou r CSR e f fo r t s f o r t he l ong- te rm sus ta i nab i l i t y o f ou r bus i ness. We a re p l eased to repo r t t ha t ou r CSR commi tmen t i n 2008 has no t wave red and we have no i n ten t i on to sca le down on ou r e f f o r t s i n 2009.

I n f ac t , t h i s c r i s i s has p rov ided us w i t h t he cha l l enge to s t r e t ch ou r r esou rces more c rea t i ve l y, so t ha t ou r e f f o r t s w i l l c rea te a l a rge r and more pos i t i ve CSR impac t on ou r bus i ness and commun i t y.

CDL’s CSR jou r ney i n 2008 has been i ndus t r i ous and the re has been much deve lopmen t no t on l y w i t h i n CDL bu t f o r t he CSR movemen t i n S ingapo re. Recep t i on to ou r f i r s t pub l i shed ded ica ted repo r t l a s t yea r has been ve r y encou rag ing. We have rece i ved ve r y pos i t i ve response f rom the med ia , i n ves to r and bus i ness commun i t y and even the academia .

2 C D L S u s t a i n a b i l i t y R e p o r t 2 0 0 9

T H E T R I P L E B O T T O M L I N E

T O

At CDL, we be l ieve tha t a successfu l corpora t ion cannot be founded on f inanc ia l and bus iness

ach ievements a lone.

Transforming our bus iness s t ra tegy fo r long-term susta inab i l i t y, we measure ourse lves based on the t r ip le bot tom l ine approach. Tak ing in to account our soc ia l , economic and env i ronmenta l per formance, we be l ieve tha t th is prov ides a ho l i s t ic bus iness mode l to prope l our Company towards fur ther growth fo r the benef i t o f a l l our

s takeho lders .

B u S I N E S S f I R S T

F R O M

Chap te r 1

For more i n fo rma t i on on CDL’s financ i a l pe r fo rmance, p l ease v i s i t www.cd l . com.sg.

2006 2007 2008 2006 2007 2008

2006 2007 2008 2006 2007 2008 2006 2007 20082006 2007 2008

2006 2007 2008 2006 2007 2008

Prof i t for the Year At t r ibutab le to Equi ty Holders of the CompanyS$mi l l i on

352

725

581

Ordinary D iv idend (net )S$mi l l i on

185

257

68

Prof i t Before Income TaxS$mi l l i on

692

955834

RevenueS$mi l l i on

2,547

3,106 2,945

37.0

5.214,734

11,00478.3 5.725,199

12,219

62.5

5.97 5,430

12,524

Shareholders ’ Equi tyS$mi l l i on

Tota l AssetsS$mi l l i on

Net Asset Va lue per ShareS$

Basic Earn ings per Sharecents

FINANCIAL HIGHLIGHTS

The Sail @ Marina Bay, Singapore’s tallest residences.

CORPORATE PROFILE

S ingapo re ’s p rope r t y p ionee r s i nce 1963, C i t y Deve lopmen ts L im i t ed (CDL ) i s a l i s t ed i n te r na t i ona l p rope r t y and ho te l cong lomera te i n vo l ved i n rea l es t a te deve lopmen t and i nves tmen t , ho te l owne rsh ip and managemen t , f ac i l i t i e s managemen t , as we l l a s t he p rov i s i on o f hosp i t a l i t y so l u t i ons.

W i th an ex tens i ve ne two rk o f more t han 300 subs id i a r i e s and assoc i a ted compan ies unde r i t s w ings, CDL a l so has f i ve compan ies l i s t ed on no tab le s tock exchanges i n New Zea l and , Hong Kong, London and ph i l i pp i nes.

CDL cu r ren t l y owns and manages a s t rong po r t f o l i o o f r es iden t i a l and i nves tmen t p rope r t i e s, i n add i t i on to ho te l s, ac ross As i a , Eu rope, No r th Amer i ca and New Zea l and/Aus t r a l i a .

I n S ingapo re, CDL ho lds an impress i ve t r ack reco rd o f hav i ng deve loped ove r 22,000 l uxu r i ous and qua l i t y homes to i t s name. As one o f t he b igges t l and lo rds i n S ingapo re, CDL owns ove r f ou r m i l l i on squa re f ee t o f l e t t ab l e o f f i ce, i ndus t r i a l , r e t a i l and res iden t i a l space.

CDL a l so owns one o f t he l a rges t l and banks amongs t p r i va te deve lope rs, w i t h ove r f ou r m i l l i on squa re f ee t t ha t has t he po ten t i a l o f be ing deve loped i n to ove r e igh t m i l l i on squa re f ee t o f g ross f l oo r a rea .

Beyond es tab l i sh i ng a d i s t i nc t i ve impr i n t on t he S ingapo re c i t y scape, CDL’s l oca l p resence i s ma tched by t he s t r a teg i c g row th o f i t s i n t e r na t i ona l bus i ness. CDL’s g loba l p resence i s l ed by i t s d i ve r s i f i ca t i on i n to hosp i t a l i t y managemen t and the acqu i s i t i on o f ho te l asse t s t h rough CDL’s London- l i s t ed subs id i a r y, M i l l enn ium & Cop tho r ne Ho te l s p l c (M&C) . As one o f t he wo r l d ’s l a rges t ho te l g roups, M&C owns, asse t

manages and/o r ope ra tes 103 ho te l s i n 18 coun t r i e s a round the wo r l d . The Hong Kong- l i s t ed C i t y e -So lu t i ons L im i t ed i s ano the r subs id i a r y o f CDL ded ica ted towa rds p rov id i ng t echno logy so lu t i ons fo r t he g loba l hosp i t a l i t y i ndus t r y.

CDL (exc l ud ing subs id i a r i e s ) has ove r 300 emp loyees a t ou r headqua r te r s i n S ingapo re.

A t CDL, we v iew our ro le as more than jus t a bu i lder o f l i v ing spaces, bu t a l so a deve loper o f l i ves and commun i t ies. S temming f rom a s t rong t rad i t ion o f g i v ing back to soc ie ty, we be l ieve tha t a success fu l corpora t ion i s de f ined beyond bus iness ach ievements and measured by the pos i t i ve con t r ibu t ions i t makes to soc ie ty and towards env i ronmenta l sus ta inab i l i t y.

S i nce t he 1990s, CSR has been an i n teg ra l pa r t o f CDL’s v i s i on and m iss ion . I t has become a gu id i ng p r i nc ip l e by wh ich we conduc t ou r bus i ness and engage w i t h ou r s t akeho lde r s and the l a rge r commun i t y so as to bu i l d an endu r i ng and sus ta i nab le o rgan i sa t i on . We va l ue each encoun te r, whe the r i t be w i t h ou r i n ves to r s, cus tomers, emp loyees, con t r ac to r s and supp l i e r s as we l l a s t he commun i t y.

We con t i nua l l y seek ways to r a i se t he ba r and t ake bo ld s teps to c rea te a be t t e r qua l i t y o f l i f e f o r t he commun i t y and env i ronmen t whe re we l i ve, wo rk , p l ay and i nves t .

C D L – L E A D I N G T H E I N D U S T R Y,C O N S E R V I N G T H E E N V I R O N M E N T, C A R I N G F O R T H E C O M M U N I T Y


2005 2006 2007 2008

S$2,374m S$2,547m S$3,106m S$2,945m

S$404m S$692m S$955m S$834m

S$200m S$352m S$725m S$581m

0 .50 0.40 0.48 0.48

4 .4% 7.4% 13.9% 10.7%

S$5.12 S$5.21 S$5.72 S$5.97

20 .8 cen ts 37.0 cen ts 78.3 cen ts 62.5 cents

7 .5 cen ts 7 .5 cen ts 7 .5 cen ts (1) 7.5 cents (2)

- 7 .5 cen ts 10.0 cen ts -

5.0 cen ts 10.0 cen ts 12.5 cen ts (1) -

3 .90 cen ts 3 .90 cen ts 3 .90 cen ts 3.90 cents (1)

YEAR 1999 2000 (3) 2001 (3) 2002 2003 2004 (3)

Revenue S$2,015m S$2,626m S$2,227m S$2,289m S$2,326m S$2,380m

Prof i t before tax S$513m S$546m S$139m S$243m S$214m S$503m

Prof i t for the year attr ibutable to equity holders of the Company S$383m S$287m S$54m S$151m S$152m S$227m

Net gear ing rat io 0 .54 0.76 0.86 0.80 0.64 0 .55

Return on equity 11.1% 7.3% 1.4% 3.9% 3.3% 5.2%

Net asset value per share S$4.28 S$4.86 S$4.71 S$4.82 S$5.56 S$4.99

Basic earnings per share 47.8 cen ts 35.8 cen ts 6 .7 cen ts 18.9 cen ts 18.8 cen ts 25.3 cen ts

DIV IDENDS

a ) Ord inar y d i v idend (g ross ) per share

- f i na l 7 .5 cen ts 7 .5 cen ts 7 .5 cen ts 7 .5 cen ts 7 .5 cen ts 7 .5 cen ts

- spec ia l i n te r im - - - - - -

- spec ia l f i na l - - - - 50.0 cen ts -

b ) P re fe rence d i v idend (ne t ) pe r share - - - - - 2 .19 cen ts

Notes:(1 ) D i v i dends dec l a red we re t ax exempt (one- t i e r ) .(2 ) F i na l t a x exempt (one- t i e r ) o rd i na r y d i v i dend fo r t he f i nanc i a l yea r ended 31 December 2008 had been app roved by t he

o rd i na r y sha reho lde r s a t t he Annua l Gene ra l Mee t i ng he ld on 29 Ap r i l 2009 and pa id on 22 May 2009.(3) Ce r t a i n accoun t i ng po l i c i es o r accoun t i ng s t anda rds had changed i n t he f i nanc i a l yea r s 2001, 2002 and 2005. On l y t he

f i nanc i a l i n fo rma t i on p resen ted above fo r each o f t he yea r s immed ia te l y p reced ing 2001, 2002 and 2005 had been res t a ted to re f l ec t t he re l evan t changes i n accoun t i ng po l i c i es o r accoun t i ng s t anda rds.

10-YEAR F INANCIAL SUMMARY


FEEDBACK CHANNEL

We ac t i ve l y seek and va l ue t he f eedback ex tended by ou r s t akeho lde r s as an impor t an t way o f improv i ng ou r CSR p rac t i ce. I f you have any v i ews, commen ts o r f eedback , p l ease send them to :

STATISTICS AND REPORTING PERIOD

Th i s repo r t p r ima r i l y f ocuses on t he ac t i v i t i e s wh ich CDL was engaged i n fo r t he yea r 2008. We have, whe reve r poss ib l e and re l evan t , p rov ided s t a t i s t i c s ove r a m in imum pe r i od o f f ou r yea r s f rom 2005 to 2008 whe re ma te r i a l . The s t a t i s t i c s cove r t he repo r t i ng pe r i od f rom 1 Janua r y 2005 to 31 December 2008 so as to p rov ide mean ing fu l da ta fo r compar i son and measu remen t .

We have rema ined s tead fas t t o ou r a im o f con t i nuous l y r ev i ew ing and re f i n i ng ou r me thodo logy and expand ing ou r e f f o r t s o f co l l ec t i ng and comp i l i ng more comprehens i ve da ta on ou r env i ronmen ta l impac t and soc i a l pe r fo rmance o f ou r bus i ness ope ra t i ons i n S ingapo re. We a re happy to s t a te t ha t f o r t h i s r epo r t , we have p resen ted add i t i ona l da ta to p rov ide a more comprehens i ve unde rs t and ing o f ou r ac t i v i t i e s and pe r fo rmance.

We expec t t ha t t he repo r t w i l l con t i nue to evo l ve ove r t he com ing yea r s as we focus on improv i ng ou r env i ronmen ta l and soc i a l da ta managemen t to enhance ou r r epo r t i ng and accoun tab i l i t y.

ASSURANCE

CDL has engaged È re-S, a CSR consu l t i ng company, t o rev i ew the con ten t o f t h i s r epo r t and va l i da te t he accu racy and re l i ab i l i t y o f a l l s t a temen ts, f i gu res and managemen t p rocesses re l a ted to sus ta i nab i l i t y f o r t he repo r t i ng pe r i od . The aud i t cove red the re l evan t Key pe r fo rmance I nd i ca to r s, po l i c i es and p rocedu res as we l l a s t he da ta sou rces and co l l ec t i on me thods. The aud i t r epo r t i nc l ud ing t he f i nd i ngs i s summar i sed i n t he i ndependen t assu rance s t a temen t on page 83.

ACCESSIBIL ITY

As pa r t o f ou r env i ronmen ta l conse r va t i on e f fo r t s, on l y a l im i t ed number o f cop ies o f t h i s r epo r t have been p r i n ted . Howeve r, t h i s r epo r t can be down loaded f rom ou r webs i t e a t www.cd l . com.sg .

Ms Esther An Head o f CSRC i t y Deve lopmen ts L im i t ed9 Ra f f l e s p l ace, #36-00 Repub l i c p l a zaS ingapo re 048619Repub l i c o f S i ngapo re

o r E-ma i l : c s renqu i r i e s@cd l . com.sg

ABOUT THIS REPORT

The CDL Sus ta i nab i l i t y Repo r t ( p rev ious l y known as t he CDL Soc i a l and Env i ronmen ta l Repo r t ) i s an annua l pub l i ca t i on de ta i l i ng ou r economic, soc i a l and env i ronmen ta l ac t i v i t i e s and pe r fo rmance. I t sha res abou t ou r engagemen t w i t h s t akeho lde r s and add resses t he soc i a l and env i ronmen ta l impac t s t ha t a re pe r t i nen t t o ou r bus i ness i n 2008.

The repo r t f ocuses on ou r p r i nc ipa l bus i ness as a p rope r t y deve lope r. Spec i f i ca l l y, i t t akes a deepe r l ook a t ou r ope ra t i ona l f unc t i ons i n p ro j ec t deve lopmen t and p rope r t y managemen t o f bo th res iden t i a l a s we l l a s commerc i a l deve lopmen ts i n S ingapo re. I t desc r i bes ou r ac t i v i t i e s wh ich t ake i n to cons ide ra t i on t he we l l -be ing o f t he commun i t y and env i ronmen t i n wh i ch we ope ra te.

I n t he pas t yea r, we have focused on mak ing f u r t he r p rog ress and improvemen ts i n ou r soc i a l and env i ronmen ta l pe r fo rmance. I n pa r t i cu l a r, much e f fo r t and success has been ach ieved i n t he l a t t e r, espec i a l l y i n t he a rea o f ene rgy reduc t i on as re f l ec ted i n t he da ta shown i n t he repo r t . We have a l so i nco rpo ra ted t he ISO 14001 and S ingapo re Qua l i t y C l ass (SQC) sys tems ac ross t he Company to f u r t he r i n t eg ra te CSR i n to ou r bus i ness.

Th i s i s t he Company ’s second ded ica ted repo r t on sus ta i nab i l i t y. CDL i s vo l un ta r i l y d i sc los i ng t he i n fo rma t i on as t he Company respec t s and upho lds t he p r i nc ip l e o f co rpo ra te t r anspa rency and open commun ica t i on .

SCOPE OF THE REPORTTh i s repo r t cove r s so le l y ou r S ingapo re ope ra t i ons. Ou r subs id i a r y, M&C, sha res i t s CSR ac t i v i t i e s i n i t s Annua l Repo r t wh i ch i s ava i l ab l e a t www.m i l l enn iumho te l s. com.

STANDARDS OF MEASUREMENT

The G loba l Repo r t i ng I n i t i a t i ve (GR I ) G3 Gu ide l i nes was used to p repa re t h i s r epo r t . Based on the GR I App l i ca t i on Leve l C r i t e r i a f o r r epo r t i ng, we se l f -dec l a re t h i s r epo r t t o be a Leve l B+ repo r t . Re fe rences have a l so been made to t he Un i t ed Na t i ons (UN) G loba l Compac t ’s 10 Un i ve r sa l p r i nc ip l es.


G R O W I N G R E S P O N S I B LY

T O

As S ingapore ’s lead ing proper ty p ioneer, CDL has the v is ion and fores ight to put in p lace management approaches and CSR pract ices to de l i ver qua l i t y products , ser v ice exce l lence and innova t ive in i t ia t i ves in the indust r y fo r

our s takeho lders .

We have remained focused and n imble to ant ic ipa te evo lv ing market cha l lenges and wi l l cont inue to se ize new growth oppor tun i t ies to c rea te new benchmarks o f sus ta inab le

bus iness exce l lence.

V I S I O N A N D S T R A T E G Y

F R O M

CDL’S CSR OBjECTIVES

Corporate

Ra ise awareness o f CSR w i th in and ou ts ide o f the Company

Ach ieve indus t r y l eadersh ip pos i t i on in CSR in S ingapore

Es tab l i sh a bus iness f ramework fo r sus ta inab le management and innova t ion

Financia l , Corporate Governance and R isk Management

Main ta in p ro f i tab i l i t y and op t imum re tu rns fo r inves tment

Ensure good corpora te governance and sound r i sk management

Crea te va lue fo r inves to rs th rough f inanc ia l and non- f inanc ia l pe r fo rmance

Ensure the ma in tenance o f an in te rna t iona l l y -based management sys tem fo r bus iness exce l l ence

Human Resource

Improve employees ’ competenc ies , max imise the i r po ten t ia l fo r ca reer deve lopment

Crea te a work env i ronment tha t suppor ts a corpora te cu l tu re o f work- l i f e harmony

Improve employee ’s hea l th and we l l -be ing

Ach ieve indus t r y l eadersh ip pos i t i on in Workp lace Hea l th and Work- l i f e in i t i a t i ves in S ingapore

Envi ronmenta l , Heal th and Safety (EHS)

Ensure the ma in tenance o f an in te rna t iona l management sys tem fo r the env i ronment

Ach ieve indus t r y l eadersh ip pos i t i on in g reen bu i ld ings in S ingapore

Ach ieve ISO 14001 ta rge ts a t bo th corpora te and opera t iona l l eve ls

Product Responsib i l i ty

Focus and re in fo rce on de l i ve r ing qua l i t y and innova t i ve p roduc ts

Focus and re in fo rce on the deve lopment o f g reen bu i ld ings

Crea te p roduc ts tha t a re va lue fo r money

Prov ide qua l i t y cus tomer se r v ice

Supply Chain

Proac t i ve l y engage con t rac to rs and supp l ie rs on qua l i t y o f work and commi tment to EHS

Communi ty

To ser ve and c rea te a be t te r l i v ing env i ronment fo r the communi t y

P roac t i ve l y engage the communi t y in synerg is t i c co l l abora t ions and sus ta inab le CSR programmes

CSR V IS IONTo be a leader in business and a champion of CSR.

CSR MISSION STATEMENTTo be a responsible corporate citizen who believes

in creating value for stakeholders, conducting sustainable business practices, caring for the community and protecting the environment.

COMMITMENT TO STAKEHOLDERS

As a respons ib l e co rpo ra t i on , i t i s ou r goa l t o be t r anspa ren t and accoun tab le to ou r s t akeho lde r s who have an i n te res t i n ou r ope ra t i ons.

Our Customers :To p rov ide qua l i t y and i nnova t i ve p roduc t s, unsu rpassed se r v i ce and va l ue fo r money.

Our Investors :To ma in t a i n p ro f i t ab i l i t y and ach ieve op t imum re tu r ns fo r t he i r i n ves tmen t .

Our Employees:To max im i se t he i r po ten t i a l and ca re fo r t he i r pe r sona l we l l -be ing and ca ree r deve lopmen t .

Our Suppl iers :To se lec t based on qua l i t y wo rk and the i r ab i l i t y t o comp lemen t ou r commi tmen t t o env i ronmen t , hea l t h and sa fe t y.

The Communi ty :To se r ve t he commun i t y we ope ra te i n so as to c rea te a be t t e r p l ace fo r a l l , espec i a l l y ca r i ng fo r t he l ess fo r t una te, enhanc ing you th deve lopmen t , p romot i ng t he a r t s and conse r v i ng t he env i ronmen t .

Chap te r 2

C S R E N G A G E M E N T F O R T H E B U S I N E S S

IMPORTANCE OF CSR ENGAGEMENT

As a l ead ing p rope r t y deve lope r i n S ingapo re fo r ove r 45 yea r s, we s t r i ve towa rds de l i ve r i ng beyond wha t i s expec ted . A t t he hea r t o f ou r co rpo ra te v i s i on i s a focus on f i ve co re va l ues – l eade rsh ip i n i nnova t i on , qua l i t y, se r v i ce exce l l ence, p ro f i t ab i l i t y and CSR. Ou r s t akeho lde r s have come to t r us t and depend on us to p ro tec t t he i r i n t e res t s and to go the ex t r a m i l e.

CDL has been nu r t u r i ng va l uab le re l a t i onsh ips w i t h ou r s t akeho lde r s. Towa rds t h i s commi tmen t , we have adop ted a t h ree-p ronged app roach as pa r t o f ou r co rpo ra te CSR s t r a tegy to deve lop qua l i t y r es iden t i a l and commerc i a l p rope r t i e s w i t h env i ronmen ta l sus ta i nab i l i t y i n m ind , to manage p rope r t i e s i n a cos t -e f f ec t i ve and ene rgy-e f f i c i en t way as we l l a s to i n f l uence ou r s t akeho lde r s t h rough ou r ou t reach i n i t i a t i ves.

I n t h i s r epo r t , we w i l l sha re ou r managemen t app roaches and s t akeho lde r engagemen t p rac t i ces wh ich have enab led us to improve on ou r po l i c i es. W i th s t akeho lde r s ’ f eedback , we have been ab le to deve lop pos i t i ve l ong-te rm re l a t i onsh ips w i t h t hem, wh ich have con t r i bu ted to t he sus ta i nab i l i t y o f ou r bus i ness g row th .

CDL i s a l so a f i rm suppo r te r o f t he Gove r nmen t ’s 3p mode l based on t he be l i e f t ha t s yne rg i s t i c co l l abo ra t i on be tween the Peop le, P r i va te and Pub l i c sec to r s w i l l b r i ng abou t g rea te r impac t , r esu l t i ng i n be t t e r p rog rammes fo r t he bene f i t o f ou r soc ie t y.

Thus, CDL makes i t a gu id i ng p r i nc ip l e to ac t i ve l y engage ou r s t akeho lde r s and work c lose l y w i t h gove r nmen t agenc ies and non-gove r nmen ta l o rgan i sa t i ons (NGOs ) to respond to t he needs o f t he commun i t y.

CSR rema ins a concep t t ha t i s qu i t e fo re ign to many i n S ingapo re a l t hough i t i s encou rag ing to see a pos i t i ve g row ing t r end o f i n t e res t . I n 2008, we p i cked up the pace and worked c lose l y w i t h a b road range o f o rgan i sa t i ons to p romote CSR i n S ingapo re. Beyond reach ing ou t t o o the r co rpo ra t i ons, we advoca ted t he impor t ance o f CSR to t he i nves to r commun i t y, t he med ia , t he academia and the you th .

We pa r t i c i pa ted i n w ide- rang ing even t s such as t he Mer r i l l Lynch R i s i ng


CDL’S STRATEGIC ENVIRONMENTAL MANAGEMENT SYSTEMS

I n 2003, t he CDL top managemen t a r t i cu l a ted CDL’s f i rm commi tmen t t o be ing a g reen and respons ib l e deve lope r w i t h t he es tab l i shmen t o f t he Env i ronmen ta l , Hea l t h and Sa fe t y (EHS) po l i c y to c rea te a “Sa fe and G reen” cu l t u re. The po l i c y se t s t he s t r a teg i c d i r ec t i on fo r a l l depa r tmen t s to t ake p rac t i ca l e f f o r t s t o ensu re e f f ec t i ve EHS managemen t so as to c rea te a “G reen” cu l t u re, conse r ve resou rces and p reven t po l l u t i on .

and wa te r conse r va t i on have a l so been i den t i f i ed w i t h t a rge t s pu t i n p l ace ac ross t he bus i ness. S takeho lde r s such as ou r supp l i e r s, con t r ac to r s and consu l t an t s who p l ay a key ro l e i n t he supp l y cha in have a l so been acknow ledged and channe l s f o r engagemen t es t ab l i shed to he lp us i n ou r ques t f o r improvemen t . Fo r de ta i l s, p l ease re fe r t o Chap te r 4 .

I s sues such as poss ib l e improp r i e t i e s, t he impor t ance o f c rea t i ng a f a i r wo rkp l ace and improv i ng emp loyee compe tenc ies have a l so been h igh l i gh ted as a reas o f f ocus fo r Emp loyee Re la t i ons among o the r conce r ns. I n t h i s r ega rd , ou r Wh i s t l e -B low ing po l i c y, t he p rocess o f dea l i ng w i t h g r i evances and annua l emp loyee pe r fo rmance app ra i sa l s ys tem compr i ses con f i den t i a l commun ica t i on channe l s t o f u r t he r engage ou r emp loyees. Fo r de ta i l s, p l ease re fe r t o Chap te r 5 .

To improve CSR pe r fo rmance i n t he a reas o f Co rpo ra te Gove r nance and R i sk Managemen t , do ing beyond wha t i s r egu l a ted and expec ted i s impor t an t t o re i n fo rce ou r pos i t i on as an i ndus t r y l eade r. E f f o r t s i n t h i s a rea w i l l i nc l ude h ighe r l e ve l s o f t r anspa rency w i t h g rea te r d i sc losu re o f CSR i n fo rma t i on and ra i s i ng t he CSR awa reness o f key s t akeho lde r s such as ou r i n ves to r s. Fo r de ta i l s, p l ease re fe r t o Chap te r 3 and page 21.

S takeho lde r r e l a t i ons rema in a p r i o r i t y as pa r t o f CDL’s CSR engagemen t e f f o r t s. The a reas o f impor t ance h igh l i gh ted by t he commi t t ee i nc l ude s tepp ing up on ou r ou t reach e f fo r t s and feedback channe l s o f ou r s t akeho lde r s, such as ou r cus tomers and supp l i e r s, as we l l a s de te rm in i ng t he e f f ec t i veness o f such engagemen t e f f o r t s. Fo r de ta i l s, p l ease re fe r t o pages 20 to 23.

One recu r r i ng i s sue w i t h rega rd to commun i t y engagemen t h igh l i gh ted by t he commi t t ee rema ins t he l ack o f i n t e r na t i ona l l y - recogn i sed s t anda rd i sed too l s f o r measu remen t o f commun i t y ou t reach e f fo r t s. Thus, t he commi t t ee has reso l ved to es t ab l i sh Kp I s i n t h i s r ega rd wh i l e r e t a i n i ng CDL’s commun i t y e f f o r t s i n t he fou r co re a reas – the env i ronmen t , t he a r t s, you th deve lopmen t and the l ess fo r t una te. They i nc l ude t a rge t s such as number o f vo l un tee r manhou rs ach ieved a yea r as we l l a s t he annua l pa r t i c i pa t i on r a te o f emp loyees. We have a l so been ac t i ve l y engag ing ou r commun i t y s t akeho lde r s t h rough cons tan t d i a l ogue and feedback . Fo r de ta i l s, p l ease re fe r t o Chap te r 6 .

Soc i a l and env i ronmen ta l r i s ks and oppo r tun i t i e s have become a co re g loba l bus i ness i s sue fo r many bus i nesses. Recogn i s i ng t h i s, CDL es tab l i shed the CSR Commi t t ee i n 2008 to be t t e r a l i gn ou r CSR i n i t i a t i ves w i t h ou r bus i ness s t r a tegy to ach ieve more dynam ic i n teg ra t i on o f CSR i n to ou r bus i ness ope ra t i ons. Th i s commi t t ee repo r t s d i r ec t l y t o ou r Manag ing D i rec to r Mr Kwek Leng Joo and the commi t t ee members compr i s i ng t he sen io r managemen t o f t he Company.

The sen io r managemen t has, w i t h i n t he scope o f CDL’s co rpo ra te ope ra t i ons, de te rm ined tha t t he Env i ronmen t , Emp loyee Re la t i ons, Co rpo ra te Gove r nance and R i sk Managemen t , S takeho lde r Re l a t i ons and Commun i t y cons t i t u t e key CSR a reas ma te r i a l t o t he bus i ness. The CSR Commi t t ee w i l l be respons ib l e fo r CDL’s CSR Key pe r fo rmance I nd i ca to r s (Kp I s ) and t a rge t s, f o rmu la t i ng and manag ing p rog rammes to improve CDL’s soc i a l and env i ronmen ta l pe r fo rmance i n t hese a reas o f f ocus. I n t he p rocess, t he commi t t ee has a l so fo rma l l y es t ab l i shed CDL’s s i gn i f i can t CSR i s sues and co re s t akeho lde r s i n vo l ved .

Fo r t he Env i ronmen t , t he CSR Commi t t ee i s f i rm on CDL’s commi tmen t t o con t i nue ou r e f f o r t s t o rema in an i ndus t r y l eade r i n deve lop ing and manag ing g reen bu i l d i ngs. Co re env i ronmen ta l aspec t s such as ene rgy

ADVISOR Manag ing D i rec to r

ADVISORY PANEL Sen io r Managemen t

CHAIRMAN Sen io r Managemen t

CORP GOVERNANCE/ R ISK

MANAGEMENT

STAKEHOLDER RELATIONS

COMMUNITYEMPLOYEE RELATIONS

ENVIRONMENT

CDL CSR Commit tee Structure :

ESTABLISHMENT OF A COMMITTEE

The i nco rpo ra t i on o f CSR tha t has s i nce become i n teg ra l t o CDL’s bus i ness was a co rpo ra te d i r ec t i ve by t he Company ’s top managemen t . W i t hou t t he i r f o res igh t and suppo r t , much tha t we have ach ieved wou ld no t have been poss ib l e.

S ta r s -As i an Con fe rence on CSR, Jun io r Chamber I n te r na t i ona l CSR Con fe rence, I n s t i t u t e o f pub l i c Re l a t i ons o f S i ngapo re Lunch t ime Ta l k on CSR, S ingapo re I ns t i t u t e o f I n t e r na t i ona l A f f a i r s CSR and Sus ta i nab le Deve lopmen t pub l i c Con fe rence and be ing an i ndus t r y pa r t ne r f o r t he As i an Fo rum on CSR. To ra i se CSR awa reness amongs t t omor row ’s l eade rs, we pa r t i c i pa ted a t t he S ingapo re Managemen t Un i ve r s i t y Fo rum on Sus ta i nab i l i t y i n Ac t i on and fo r t h ree consecu t i ve yea r s f rom 2007 to 2009, we we re a l so a key co rpo ra te pa r t ne r o f “NUS CSR Awareness Week” j o i n t l y o rgan i sed by t he Na t i ona l Un i ve r s i t y o f S i ngapo re (NUS) CSR S tuden t Movemen t , t he MBA S tuden t s ’ Co rpo ra te E th i cs Focus G roup o f NUS Bus iness Schoo l , and suppo r ted by S ingapo re Compac t f o r CSR.

We con t i nue to wo rk c lose l y w i t h S ingapo re Compac t f o r CSR, hav i ng rema ined a found ing commi t t ee member s i nce i t s i ncep t i on i n 2005. S ingapo re Compac t f unc t i ons as a na t i ona l soc ie t y advoca t i ng CSR among the bus i ness commun i t y t h rough awa reness d i a l ogues and workshops.

In 2008, CDL a l so endorsed the Un i ted Na t ions (UN) Ca r i ng fo r C l ima te s ta temen t to mob i l i se the bus iness commun i t y to deve lop so lu t i ons to reduce c l ima te r i sk . CDL was a l so one o f the found ing S ingapore s igna to r i es o f t he UN G loba l Compac t to l end suppor t to the advancement o f respons ib le co rpo ra te c i t i zensh ip i n S ingapore i n 2005.

S ince 2002, CDL i s t he on l y S ingapo re deve lope r to rema in consecu t i ve l y l i s t ed on t he London FTSE4Good I ndex Se r i es fo r wo rk i ng towa rds env i ronmen ta l sus ta i nab i l i t y, deve lop ing pos i t i ve re l a t i onsh ips w i t h s t akeho lde r s and upho ld i ng and suppo r t i ng un i ve r sa l human r i gh t s.

I t i s ou r hope tha t by sha r i ng ou r CSR expe r i ence w i t h t he commun i t y, CSR w i l l be more common l y p rac t i ced i n ou r soc ie t y.


As pa r t o f t he des ign deve lopmen t p rocess, we l ook beyond aes the t i c and func t i ona l des igns t ha t ou r cus tomers seek . CDL i s an i ndus t r y l eade r because we go the ex t r a m i l e by i nco rpo ra t i ng f ea tu res i n ou r p rope r t i e s t ha t no t on l y an t i c i pa tes t he l i f e s t y l e needs o f ou r cus tomers bu t p rov ide va l ue-added eco- f r i end l y e l emen ts to i n f l uence and encou rage them to dec rease t he i r ca rbon foo tp r i n t .

Towa rds t h i s, we have se t t a rge t s and measu remen ts to ma in t a i n a cons i s t en t l y h igh l eve l o f s t anda rds o f qua l i t y and sus ta i nab i l i t y i n ou r p rope r t i e s.

We con t i nue to i n ves t be tween 2% and 5% o f t he cons t ruc t i on cos t o f a deve lopmen t on g reen des ign and fea tu res, and s t r i ve to ach ieve a t l eas t a BCA Green Mark Go ld r a t i ng fo r a l l new deve lopmen ts. As a measu re o f qua l i t y, we make eve r y e f f o r t t o ensu re t ha t CDL p rope r t i e s a re we l l -p l aced on BCA’s Cons t ruc t i on Qua l i t y Assessmen t Sys tem (CONQUAS) (2) r ank ing cha r t . CONQUAS i s a s t anda rd assessmen t sys tem on the qua l i t y o f bu i l d i ng p ro j ec t s i n S ingapo re.

(2) A national yardstick for the industry in Singapore, CONQUAS was introduced in 1989 by BCA as a standard assessment system on the quality of building projects. New features to make scoring more comprehensive and customer oriented were included in 1998. By using CONQUAS as a standardised method of quality assessment, developers are able to use the CONQUAS score to set targets to achieve and also assess the quality of the finished building. For more details on CONQUAS, please visit www.bca.gov.sg.

FOR OUR MARKET I n t he l a s t t h ree yea r s o r so, t he p rope r t y i ndus t r y has been d r i ven by a g reen momen tum as consumers, deve lope rs and the Gove r nmen t have become acu te l y awa re o f t he u rgency to go g reen i n l i gh t o f t he c l ima te change c r i s i s. Th i s i s espec i a l l y so as t he Gove r nmen t has made the Bu i l d i ng and Cons t ruc t i on Au tho r i t y (BCA) G reen Mark ce r t i f i ca t i on manda to r y fo r a l l new deve lopmen ts i n Ap r i l 2008. Fo r de ta i l s, p l ease re fe r t o page 25.

Howeve r, many cha l l enges such as ove rcom ing t r ad i t i ona l m indse t s, h igh cos t t o i nco rpo ra te and ma in t a i n eco- fea tu res, encou rag ing more consumer buy- i n and c rea t i ng a demand to p romote more resea rch and deve lopmen t fo r cheape r g reen techno log ies rema in .

Embrac ing t he t r i p l e bo t tom l i ne mode l , CDL has been dynam ica l l y deve lop ing f i nanc i a l l y ma rke tab le and sus ta i nab le g reen p rope r t i e s i n S ingapo re fo r more t han a decade. True to ou r co rpo ra te m i ss ion , we s t r i ve to c rea te i nnova t i ve and qua l i t y p rope r t i e s t ha t can b r i ng abou t t he bes t va l ue fo r ou r cus tomers and i nves to r s wh i l e m i t i ga t i ng t he impac t on t he env i ronmen t .

Parc Emily is the first development in Singapore to install a twin-chute pneumatic waste disposal system. This system (far left) comprises two hoppers where residents may dispose of two groups of waste – one for general waste and one for recyclables. Recyclables include items such as paper, plastic bottles and metal cans. This makes recycling more convenient for residents. At a specially organised Open House which is part of “Let’s Live Green!”, CDL’s eco-initiative for homebuyers, attendees were taught how to use the system properly. They were also presented with a reusable goodie bag (left) which included a Green Living Guide and a live plant.

Manag ing D i rec to r

Managemen t Rep resen ta t i ve

A l t e r na te Managemen t

Rep resen ta t i ve

Documen t Con t ro l l e r

I n t e r na l Aud i t o r s

Heads o f Depa r tmen t

CDL Corporate Management and Operat ions EMS Organisat ional St ructure :

RESPONDING TO CHALLENGES IN THE EVOLVING MARKETPLACE

Fo r t he l a s t 10 yea r s, CDL’s commi tmen t t owa rds CSR had l ed to t he c rea t i on o f a CSR s t r a tegy and va l ue-sys tem wh ich i s t he founda t i on o f ou r CSR p rac t i ce.

G i ven t ha t CSR d id no t have an es tab l i shed foo tho ld i n t he S ingapo re bus i ness commun i t y un t i l r ecen t yea r s, ou r CSR p rac t i ces we re mos t l y deve loped th rough a cou rse o f ac t i ve engagemen t w i t h ou r s t akeho lde r s and on a “need-be” bas i s, deve lop ing wha t we fe l t we re impor t an t CSR p rac t i ces ma te r i a l t o ou r bus i ness.

As t he re i s cu r ren t l y no one conso l i da ted i n te r na t i ona l s t anda rd on CSR, t h i s makes i t d i f f i cu l t f o r us to c rea te o r t o use an i n te r na t i ona l l y p resc r i bed f r amework to i n t eg ra te and s t r uc tu re ou r CSR e f fo r t s. None the less, as ea r l y as 2003, we have s t a r t ed to fo rma l i se ou r bus i ness p rocesses, deve lop ing managemen t sys tems i n a reas pe r t i nen t t o CSR, such as t he env i ronmen t , qua l i t y, se r v i ce, sa fe t y, e t c. t ha t comp l y w i t h a na t i ona l and/ o r i n t e r na t i ona l se t o f s t anda rds.

We be l i e ve i t i s impor t an t t o fo rmu la te new benchmarks and re -eva lua te cu r ren t managemen t sys tems to he lp us to con t i nua l l y r ev i ew, re f i ne and improve ou r bus i ness. They shou ld a l so he lp us l ook ahead to an t i c i pa te and add ress t he needs o f ou r s t akeho lde r s and to p rov ide a f r amework on how we can improve ou r bus i ness to be t t e r p ro tec t and enhance the i r i n t e res t s.

2008 was a busy and cha l l eng ing yea r f o r us as we p repa red the Company to ach ieve t he ISO 14001 ce r t i f i ca t i on ( f o r a l l co re and suppo r t i ng d i v i s i ons ) as we l l a s t he S ingapo re Qua l i t y C l ass (SQC) (1) ce r t i f i ca t i on , de ta i l s o f wh i ch can be found i n Chap te r 4 and th i s chap te r r espec t i ve l y. We a re happy to repo r t t ha t we have a l r eady seen the f r u i t s o f ou r l abou r, hav i ng me t ou r t a rge t s fo r ISO 14001 i n 2008. S im i l a r l y, we a re wo rk i ng re l en t l e ss l y t o ach ieve ou r SQC ta rge t s fo r 2009.

(1) Launched in 1997, SQC is based on an internationally-benchmarked business excellence framework, and its broad approach encompasses seven areas, namely, Leadership, planning, Information, people, processes, Customers and Results. For more details on SQC, please visit www.spring.gov.sg.

I n l i ne w i t h CDL’s EHS po l i c y, we embarked on fo rma l i s i ng ou r Env i ronmen ta l Managemen t Sys tems (EMS) to he lp se t t he f r amework fo r e f f ec t i ve imp lemen ta t i on and sus ta i nab i l i t y. A l l CDL emp loyees a re commi t t ed to improv i ng on t he Company ’s env i ronmen ta l pe r fo rmance. Fo r de ta i l s, p l ease re fe r t o Chap te r 4 .

The EMS Organ i sa t i on i s cha i r ed by ou r Manag ing D i rec to r Mr Kwek Leng Joo and the appo in ted Managemen t Rep resen ta t i ve champ ions t he es tab l i shmen t , imp lemen ta t i on and ma in tenance o f t he EMS and p rov ides managemen t gu idance and co rpo ra te suppo r t ac ross t he Company.

A l l Heads o f Depa r tmen t w i t h i n t he Company have ope ra t i ona l r espons ib i l i t y f o r t he co rpo ra te EMS and spec i f i ca l l y, t he Heads o f p ro j ec t s D i v i s i on and p rope r t y & Fac i l i t i e s Managemen t D i v i s i on fo r t he ma in tenance o f t he i r r espec t i ve d i v i s i ons ’ EMS.

In 2008, CDL c rea ted a new ded ica ted pos i t i on o f an EHS spec i a l i s t . Th i s new ro l e i s r espons ib l e fo r EHS managemen t and w i l l i nc l ude tha t o f Managemen t Rep resen ta t i ve i n t he l ong run .


FOR OUR INVESTORS AND THE MEDIA

CDL’s co rpo ra te m i ss ion i s t o ma in t a i n p ro f i t ab i l i t y and op t imum re tu r ns fo r ou r i n ves to r s. We be l i e ve t ha t when engag ing t he i nves to r commun i t y, co rpo ra te t r anspa rency and open commun ica t i on i s pa ramoun t . Beyond f i nanc i a l pe r fo rmance, we cons ide r i t impo r t an t t o sha re w i t h ou r i n ves to r s ou r env i ronmen ta l and soc i a l pe r fo rmance. Th i s i s one o f t he p r ima r y reasons why CDL has chosen to vo lun ta r i l y pub l i sh t h i s ded i ca ted repo r t , even t hough i t i s no t r equ i r ed o r common l y p rac t i sed i n S ingapo re to -da te.

The re a re a l so va r i ous commun ica t i on avenues whe re i nves to r s may be p rompt l y upda ted on t he ac t i v i t i e s o f t he Company, pose t he i r que r i es and p rov ide t he i r f eedback . We make eve r y e f f o r t t o respond p rompt l y t o t hese enqu i r i e s.

Th i s i nc l udes mak ing t ime l y d i sc losu re o f t he Company ’s qua r t e r l y f i nanc i a l pe r fo rmance and b r i e f i ngs fo r t he ana l y s t s, f und manage rs and the med ia du r i ng t he ha l f - yea r and fu l l - yea r r esu l t s whe re t hey mee t and ho ld d i a l ogue w i t h t he top managemen t i nc l ud ing ou r Execu t i ve

Cha i rman , Manag ing D i rec to r, G roup Gene ra l Manage r and Ch ie f F i nanc i a l O f f i ce r. The b r i e f i ng p resen ta t i ons a re a l so eas i l y access ib l e by t he pub l i c v i a t he SGXNET (3) and the Company ’s webs i t e.

Sha reho lde r s a re encou raged to a t t end the Annua l Gene ra l Mee t i ng as t he top managemen t con t i nues t he p rac t i ce o f p resen t i ng to ou r sha reho lde r s ou r bus i ness s t r a teg ies and d i r ec t i on fo r t he yea r. I n add i t i on , t he Execu t i ve D i r ec to r s, t he Cha i rman o f each o f t he Aud i t Commi t t ee, Remune ra t i on Commi t t ee and Nomina t i ons Commi t t ee, i nc l ud ing t he ex te r na l aud i t o r s o f t he Company, a re p resen t t o f i e l d any i nves to r que r i es r a i sed du r i ng t he mee t i ng.

CDL i nves to r s and po ten t i a l i n ves to r s a l i ke a l so have numerous oppo r tun i t i e s to mee t t he top managemen t t h rough va r i ous i nves to r con fe rences, roadshows and one- to-one mee t i ngs o r t e l econ fe renc ing.

As one o f S ingapo re ’s l a rges t compan ies by marke t cap i t a l i s a t i on and a l ead ing p rope r t y deve lope r, CDL’s ac t i v i t i e s a re c lose l y mon i to red and repo r ted by t he med ia . We be l i e ve i n ma in t a i n i ng an open , t r anspa ren t and p ro fess iona l r e l a t i onsh ip w i t h t he med ia .

Th roughou t t he yea r, we keep the med ia upda ted o f ou r co rpo ra te ac t i v i t i e s v i a p ress con fe rences and p ress re l eases. One- to-one i n te r v i ews and s i t e v i s i t s a re a l so some t imes conduc ted fo r t he med ia ’s be t t e r unde rs t and ing o f ou r bus i ness and commun i t y ac t i v i t i e s o r f o r spec i a l n i che i s sues o f med ia i n t e res t . We a l so endeavou r to respons ib l y r espond to med ia que r i es p rompt l y.

As such , CDL ma in t a i ns a h igh med ia p ro f i l e and en joys gene ra l l y pos i t i ve b rand ing t h rough the ex tens i ve cove rage by p r i n t , e l ec t ron i c and b roadcas t med ia l oca l l y and reg iona l l y. CDL p rov ides a da i l y “News Bu l l e t i n ” f o r emp loyees wh ich t r acks med ia repo r t s on t he Company. Th i s se r ves as a means fo r more e f f i c i en t i n fo rma t i on sha r i ng, c l ose r engagemen t t h rough cons tan t upda tes o f CDL ac t i v i t i e s as we l l a s to fos te r a f ee l i ng o f p r i de fo r t he Company emp loyees t h rough the p redominan t l y a f f i rma t i ve repo r t s.

We also make publicly available on our website www.cdl.com.sg (above) corporate materials about CDL such as annual reports, quarterly corporate newsletters, financial information, announcements, press releases, etc.

(3) Singapore Exchange Limited (SGX) is a demutualised and integrated securities and derivatives exchange where CDL is listed. All Company announcements must be posted on SGXNET (www.sgx.com) for public dissemination.

FOR OUR CUSTOMERS

Cus tomer sa t i s f ac t i on has a lways been o f t he u tmos t p r i o r i t y a t CDL. An t i c i pa t i ng and sa t i s f y i ng t he i r needs ensu res t he a t t r ac t i on o f po ten t i a l and new cus tomers as we l l a s t he l oya l t y and re ten t i on o f cu r ren t ones. pos i t i ve wo rd-o f -mou th commun ica t i on i s a l so an impor t an t ma rke t i ng and b rand ing too l .

CDL’s success fu l s t r a tegy o f deve lop ing t he mos t op t imum p roduc t i s t h rough the ac t i ve engagemen t o f ou r cus tomers. When des ign ing ou r p roduc t , we f i r s t l ook a t a comprehens i ve l i s t o f i nd i ca to r s t ha t a re mos t pe r t i nen t t o t he requ i r emen ts o f ou r cus tomers. Th i s w i l l va r y depend ing on t he spec i f i c p roduc t and t a rge t ma rke t . We a l so an t i c i pa te poss ib l e l i f e s t y l e t r ends by go ing on l ea r n i ng t r i p s ab road so as to uncove r new and exc i t i ng i nnova t i ve f ea tu res and techno logy t ha t we can poss ib l y i n t roduce to t he l oca l ma rke t . We a re gu ided by t he a l l - impor t an t p r i nc ip l e o f l i s t en i ng to wha t ou r cus tomers rea l l y wan t and l ook ing a t t he en t i r e l i f e cyc l e o f t he p roduc t .

Fo r i n s t ance, a focus g roup s tudy i s one o f t he too l s used to de te rm ine t he spec i f i c t ype o f des ign , f ea tu res and amen i t i e s mos t des i r ed fo r a g i ven p ro j ec t du r i ng t he i n i t i a l des ign phase. A f t e r wh i ch , we seek t he op in ion o f ou r i n -house expe r t s and p ro fess iona l adv i ce o f ex te r na l consu l t an t s to de te rm ine t he f i na l spec i f i ca t i ons o f t he p roduc t , bea r i ng i n m ind the cons t ruc t i ve op in ions based on the ea r l i e r exe rc i se.

A t t he g round l eve l , an i n fo rma l f eedback o r a su r vey may be conduc ted to ob ta i n t he op in ions o f po ten t i a l and ex i s t i ng cus tomers du r i ng t he marke t i ng o f t he p roduc t . F i na l l y, f o r r es iden t i a l p rope r t i e s, a su r vey w i l l be conduc ted a f t e r t he handove r to ex t r ac t any f u r t he r f eedback and to gauge the l eve l o f cus tomer sa t i s f ac t i on .

Th roughou t t he cyc l e, i n t e r-depa r tmen t mee t i ngs a re regu l a r l y he ld whe re t he i n fo rma t i on ob ta i ned i s sha red . Th i s way, we know d i r ec t l y f r om ou r cus tomers wha t t hey l i ke and wha t a reas we can improve on .

I n add i t i on to p rov id i ng cus tomers w i t h t he p roduc t t hey des i r e, we a l so s t r i ve to ex tend an impeccab le s t anda rd o f cus tomer se r v i ce to t hem. The CDL ho t l i ne (+65 6877 1818) i s managed by ou r t eam o f h igh l y t r a i ned Cus tomer Re l a t i ons Execu t i ves. I n add i t i on to respond ing to bas i c f r equen t l y asked que r i es, t hey a re a l so empowered to manage more demand ing reques t s as t hey have d i r ec t access to cus tomer reco rds. Th i s way, cus tomers ’ que r i es may be responded to p rompt l y and e f f i c i en t l y.

We a l so v i ew ou r re l a t i onsh ip w i t h ou r cus tomers as a sus ta i nab le and l ong- te rm one. Fo r i n s t ance, we con t i nue to engage ou r homebuye rs by conduc t i ng a cus tomer sa t i s f ac t i on su r vey a f t e r t he handove r o f t he apa r tmen t and we a l so conduc t annua l su r veys fo r ou r t enan t s.

Process of Product Development :

• In fo rma l su r vey /f eedback f rom ex i s t i ng cus tomers and cus tomers

• Exam ina t i ono f p re fe r red cho i ce op t i ons o f cus tomers

Comp le t i on o fp roduc t

p roduc t Sa lesp roduc t Deve lopmen t and I nnova t i on

•Cus tomer ’s Needs

- L i s t o f I nd i ca to r s - Company Expe r i ence - Cus tomer Su r veys - Cus tomer Focus G roups - Cus tomer Feedback

•Marke t Trends

•Expe r t Consu l t an t s

• Fo rma lsu r vey / f eedback f rom cus tomers


GREEN PROCUREMENT GUIDELINES

•Sha re t he co rpo ra te EHSPo l i c y w i t h newvendo rs and supp l i e r s

• Ind i ca te p re fe rence fo r use o f eco-f r i end l y / recyc led ma te r i a l s and p roduc t s

• Ind i ca te p re fe rence fo r ISO14001ce r t i f i ed vendo r

•Dec la re t he use o f eco- f r i end l y / recyc ledpape r on t he p r i n ted ma te r i a l s

FOR OUR COMMUNITY

I n 2008, c lose r co l l abo ra t i on e f fo r t s and ac t i ve engagemen t w i t h t he s t akeho lde r s i n ou r commun i t y, CDL has ach ieved remarkab le resu l t s such as i nc reased emp loyee vo lun tee r hou rs and pa r t i c i pa t i on r a te as we l l a s success o f many key co l l abo ra t i ve even t s w i t h gove r nmen t agenc ies and NGOs. Fo r de ta i l s, p l ease re fe r t o Chap te r 6 .

FOR OUR OTHER STAKEHOLDERS

A l t hough CDL has i den t i f i ed ou r cus tomers, i n ves to r s, emp loyees, supp l i e r s and the commun i t y as ou r key s t akeho lde r s, we do recogn i se t ha t t he re a re o the r impor t an t s t akeho lde r s s temming f rom gove r nmen t agenc ies and NGOs tha t we have been ac t i ve l y engaged w i t h ove r t he yea r s. Fo r examp les, p l ease re fe r t o Chap te r 6 .

MOVING FORWARD

CDL s t r i ves to con t i nue ou r commi tmen t i n CSR. We w i l l wo rk towa rds t r ans fo rm ing CDL to become an ou t s t and ing CSR l eade r w i t h a pos i t i on t ha t i s subs tan t i a t ed by a t t a i n i ng g loba l l y - recogn i sed CSR s tanda rds and pe r fo rmance and va l i da ted by no tab le o rgan i sa t i ons he re and ab road . A l t hough ou r sus ta i nab i l i t y - re l a ted e f fo r t s have been recogn i sed ; hav i ng been i nc l uded i n t he FTSE4Good I ndex se r i es s i nce 2002 and l i s t ed as t he top r anked company f rom S ingapo re i n t he CSR As i a Bus iness Ba rome te r on CSR d i sc losu re i n 2008, t h i s r ema ins bu t t he s t a r t o f ou r CSR jou r ney.

As an advoca te o f CSR, we w i l l con t i nue to sp read i n te res t and t ake ac t i on , suppo r t i ng and con t r i bu t i ng to key g loba l bod ies such as t he UN G loba l Compac t . We t ake p r i de a t hav i ng been named the i naugu ra l BCA Green Mark Champ ion i n 2008 and th i s on l y spu r s us to l ead t he g reen bu i l d i ng movemen t i n S ingapo re and to be a BCA Green Mark p l a t i num Champ ion i n t he f u tu re.

The con t r ac to r i s r espons ib l e fo r t he imp lemen ta t i on and ma in tenance o f a l l measu res necessa r y to keep the cons t ruc t i on s i t e sa fe and w i t hou t r i s ks to hea l t h fo r t he wo rke r s. Fo r i n s t ance, t h i s i nc l udes t he i nco rpo ra t i on o f p rog rammes fo r mosqu i to p reven t i on and pes t con t ro l . The s i t e o f f i ces and bas i c amen i t i e s such as to i l e t s mus t a l so be equ ipped w i t h e l ec t r i c i t y, wa te r, adequa te l i gh t i ng and ven t i l a t i on .

Suppl iers and Vendors Management – Green Procurement Guide l ines

To ensu re ou r vendo rs and supp l i e r s a re a l i gned w i t h CDL’s g reen p rocu remen t p rac t i ces, we fo rma l i sed t he G reen p rocu remen t Gu ide l i nes a t ou r co rpo ra te o f f i ce i n 2008. Ou r emp loyees have a l so been ac t i ve l y commun ica t i ng t he new g reen gu id i ng p r i nc ip l e to ou r vendo rs and supp l i e r s.

FOR OUR EMPLOYEES

CDL con t i nued to re f i ne ou r human resou rce p rac t i ces w i t h a v i ew to engage and re t a i n ou r emp loyees, cu l t i v a te t he i r po ten t i a l and to a l so ca re fo r t he i r we l l -be ing a t wo rk and a t home. Fo r de ta i l s, p l ease re fe r t o Chap te r 5 .

FOR OUR SUPPLIERS

Contractor Management – CDL 5-Star EHS Assessment System

As ea r l y as 2001, CDL has been t ak i ng t he l ead i n i n f l uenc ing ou r consu l t an t s and con t r ac to r s to adop t bes t p rac t i ces i n EHS managemen t sys tems. To encou rage them to sha re t he same l eve l o f commi tmen t and s t anda rds to conse r ve t he env i ronmen t , CDL l aunched a qua r t e r l y aud i t , known as t he CDL 5-S ta r EHS Assessmen t Sys tem. A l l wo rk s i t e s a re i ndependen t l y app ra i sed and g raded on a sca le o f one to f i ve s t a r s.

A f t e r each r i go rous and s t r i ngen t i ndependen t aud i t , CDL f ac i l i t a t es pee r l ea r n i ng and sha r i ng o f bes t p rac t i ces among consu l t an t s and con t r ac to r s to encou rage be t t e r EHS pe r fo rmance i n t he nex t r ev i ew.

S ince 2005, CDL has been con fe r r i ng t he EHS Exce l l ence Award to ou r con t r ac to r s who have cons i s t en t l y r eached 5-S ta r aud i t sco res ove r a one-yea r aud i t pe r i od . Th i s a l so a ims to mo t i va te a l l o f ou r con t r ac to r s and consu l t an t s to wo rk toge the r t o improve t he i r EHS resu l t s f o r env i ronmen ta l l y - f r i end l y and acc iden t - f r ee CDL p ro j ec t s i t e s.

I n 2006, we ra i sed t he s t anda rd and i n t roduced the EHS Mone ta r y Awa rd to f u r t he r mo t i va te and i nsp i r e ou r con t r ac to r s. Th i s i ncen t i ve -based awa rd i s g i ven to pas t awa rd rec ip i en t s who have subsequen t l y c l i nched na t i ona l EHS awa rds such as t he M in i s t r y o f Manpower (MOM) Annua l Sa fe t y and Hea l t h pe r fo rmance Award . A to t a l o f 14 awa rds have been p resen ted to ou r con t r ac to r s fo r t he i r EHS e f fo r t s i nc l ud ing a reco rd f i ve awa rds i n 2009 fo r ou t s t and ing pe r fo rmance i n 2008.

Our i n f l uence has mo t i va ted ou r consu l t an t s and con t r ac to r s to es t ab l i sh t he i r own EHS managemen t sys tem and more t han 50% have ob ta i ned the ISO 14001 and OHSAS 18001 ce r t i f i ca t i ons. I n add i t i on ,

a l l t he ma in con t r ac to r s o f CDL p ro j ec t s a re requ i r ed to be bo th ISO 14001 and OHSAS 18001 ce r t i f i ed .

I n 2008, CDL became the f i r s t deve lope r t ha t was ce r t i f i ed as a b i zSAFE pa r tne r and we have a l so managed to encou rage a l l ou r con t r ac to r s to be b i zSAFE pa r tne r s. b i zSAFE i s a new p rog ramme ta i l o red by t he Workp l ace & Sa fe t y Hea l t h Counc i l (WSHC) to ass i s t Sma l l and Med ium En te rp r i ses (SMEs ) bu i l d up t he i r wo rkp l ace sa fe t y and hea l t h capab i l i t i e s.

from left: Mr Eddie Wong, CDL General Manager and Head, Projects Division, Mr frederic Perez, Dragages Project Director, Guest of Honour Mr Ho Siong Hin, Divisional Director for Occupational Safety and Health, Ministry of Manpower, Mr Masanobu Shinoda, Kajima Vice Managing Director and Mr Chia Ngiang Hong, CDL Group General Manager at the CDL 5-Star EHS Excellence Awards Presentation Ceremony.

Labour Po l icy at Work S i te

CDL requ i r es a l l ou r con t r ac to r s to comp l y w i t h t he l abou r r i gh t s o f wo rke r s emp loyed by t hem a t eve r y wo rk s i t e. We a l so s t i pu l a te t ha t ou r con t r ac to r s have to comp l y w i t h a l l r equ i r emen ts o f t he l oca l Hea l t h and We l f a re by- l aws and Regu la t i ons pe r t a i n i ng to wo rk s i t e s and a l l peop le emp loyed the reon .


(4) For more details on the BCA Green Mark Scheme, please visit www.bca.gov.sg.

IN FOCUS:CHAMPIONING BCA’S GREEN MARK SCHEME

The BCA Green Mark Scheme (4) was l aunched i n 2005 as an i n i t i a t i ve to move S ingapo re ’s cons t ruc t i on i ndus t r y t owa rds sus ta i nab le and env i ronmen ta l l y - f r i end l y bu i l d i ngs by i nco rpo ra t i ng bes t p rac t i ces i n env i ronmen ta l des ign and cons t ruc t i on , and the adop t i on o f g reen bu i l d i ng t echno log ies. I t i s a f r amework and ra t i ng sys tem fo r assess i ng bu i l d i ngs env i ronmen ta l pe r fo rmance and impac t .

Bu i l d i ngs a re awa rded p l a t i num, Go ld plus, Go ld o r Ce r t i f i ed r a t i ng depend ing on t he po in t s sco red . Bu i l d i ngs a re awa rded the BCA Green Mark based on f i ve key c r i t e r i a i nc l ud ing Ene rgy E f f i c i ency, Wa te r E f f i c i ency, S i t e /p ro j ec t Deve lopmen t & Managemen t (Bu i l d i ng Managemen t & Ope ra t i on fo r ex i s t i ng bu i l d i ngs scheme) , Good I ndoo r Env i ronmen ta l Qua l i t y & Env i ronmen ta l p ro tec t i on and I nnova t i on .

The BCA Green Mark assessmen t c r i t e r i a cove r s two ma in ca tego r i es : New Bu i l d i ngs and Ex i s t i ng Bu i l d i ngs. The scheme fo r new bu i l d i ngs w i l l p rov ide t he oppo r tun i t y f o r deve lope rs to des ign and cons t ruc t g reen , sus ta i nab le p rope r t i e s wh ich can p romote ene rgy sav i ngs, wa te r sav i ngs, hea l t h i e r i ndoo r env i ronmen ts and adop t i on o f more g reene r y. The scheme fo r ex i s t i ng bu i l d i ngs w i l l enab le bu i l d i ng owne rs and ope ra to r s to mee t t he i r sus ta i nab le ope ra t i ons goa l s and to reduce adve rse impac t s o f t he i r bu i l d i ngs on t he env i ronmen t and occupan t hea l t h ove r t he i r en t i r e l i f e cyc l e. S ta r t ed as a vo lun ta r y scheme and made manda to r y i n Ap r i l 2008, t he new regu l a t i on has had no bus i ness impac t on CDL as we have been suppo r t i ng t he scheme, submi t t i ng a l l new deve lopmen ts fo r t he ce r t i f i ca t i on s i nce i t s i ncep t i on .

CDL’s 10 Green Mark awa rded bu i l d i ngs i n 2008 a re expec ted to save up to S$4 m i l l i on i n ene rgy cos t s annua l l y upon comp le t i on .

I n 2008, CDL was honou red to be t he f i r s t and on l y deve lope r acco rded the i naugu ra l BCA Green Mark Champ ion Award , i n r ecogn i t i on o f ou r sus ta i ned commi tmen t t owa rds CSR, ach iev i ng an ou t s t and ing t r ack reco rd i n env i ronmen ta l sus ta i nab i l i t y and hav i ng me t t he m in imum c r i t e r i a o f 10 BCA Green Mark Go ld ce r t i f i ca t i ons i nc l ud ing t h ree p l a t i num and Go ld plus ce r t i f i ca t i ons each .

I n May 2009, CDL was con fe r red t he i naugu ra l BCA Bu i l t Env i ronmen t Leade rsh ip p l a t i num Award . Th i s awa rd i s p resen ted to a deve lope r who has demons t r a ted exce l l ence and l eade rsh ip i n t he bu i l t env i ronmen t i n S ingapo re. I n 2009, we pa r t i c i pa ted i n t he G reen Mark fo r O f f i ce I n te r i o r Scheme as pa r t o f a BCA p i l o t g roup and the CDL o f f i ce a t C i t y House was acco rded the i naugu ra l BCA Green Mark O f f i ce I n te r i o r Go ld plus Awa rd i n March 2009. We a re one o f t he f i r s t f ew o f f i ces to rece i ve t h i s r ecogn i t i on .

CDL is proud to have been honoured with the inaugural BCA Green Mark Champion Award, received by Mr Kwek Leng Joo, CDL’s Managing Director from Guest of Honour Minister Mah Bow Tan, in addition to another 12 awards conferred at the BCA Awards 2008.

IN FOCUS:S INGAPORE QUAL ITY CLASS (SQC) – IMPROV ING WORK PROCESSES FOR BUS INESS EXCELLENCE AND A H IGH PERFORMANCE ORGANISAT ION

I n a cha l l eng ing ope ra t i ng env i ronmen t whe re compe t i t i on i s g loba l and i n tense, o rgan i sa t i ons s t r i ve fo r wo r l d -c l ass s t anda rds o f bus i ness exce l l ence to ach ieve a compe t i t i ve edge fo r t hemse l ves. Bus iness exce l l ence i nvo l ves be ing v i s i on-d r i ven , s t r a teg i c, va l ue- focused , respons i ve, adap tab le, e f f i c i en t and cus tomer-cen t red .

Work i ng towa rds t h i s goa l , CDL embarked on the j ou r ney to ach ieve t he SQC ce r t i f i ca t i on i n t he second ha l f o f 2008. Ou r p r ima r y a im i n t h i s exe rc i se i s t o i nco rpo ra te t he SQC bus iness exce l l ence f r amework i n to ou r co rpo ra te s t r a tegy so t ha t we no t on l y enhance ou r cu r ren t

capab i l i t i e s bu t a l so manage and improve ou r bus i ness exce l l ence e f fo r t s i n a ho l i s t i c and i n teg ra ted manne r.

I t was an i n tense and g rue l l i ng exe rc i se wh ich i nvo l ved a l l ope ra t i ona l f unc t i ons cu t t i ng ac ross a l l l e ve l s o f r espons ib i l i t i e s to adop t , a l i gn and i n teg ra te i t s app roach to manag ing a bus i ness fo r exce l l ence. Th rough the SQC ce r t i f i ca t i on p rocess, CDL unde rwen t a r i go rous assessmen t o f t he Company ’s pe r fo rmance. The p rocess has he lped to c l ea r l y i den t i f y key a reas whe re CDL has done we l l a s we l l a s uncove red a reas whe re f u r t he r improvemen ts can be made.

CDL was eva lua ted on ou r app roach to seven b road d i sc ip l i nes, name l y, Leade rsh ip, p l ann ing, I n fo rma t i on , peop le, p rocesses, Cus tomers and Resu l t s.

po in t s we re awa rded fo r CDL’s top and sen io r managemen t ’s l eade rsh ip i n deve lop ing and manag ing a h igh pe r fo rmance o rgan i sa t i on as we l l a s how the Company d i scha rges i t s r espons ib i l i t i e s to t he commun i t y and the env i ronmen t . Ope ra t i ona l f unc t i ons such as p ro j ec t deve lopmen t , p rope r t y and f ac i l i t i e s managemen t , cus tomer se r v i ce, ma rke t i ng and l eas i ng we re assessed on t he i r key p rocesses fo r i nnova t i on , p roduc t i on and de l i ve r y, cus tomer as we l l a s supp l i e r and pa r t ne r i ng managemen t .

SQC assesso rs a l so rev i ewed the s t r a teg ies and mechan i sms dep loyed to deve lop emp loyees po ten t i a l , p romote t eam work and i nvo l vemen t as we l l a s how CDL’s v i s i on , m i ss ion and sha red va l ues a re embraced by one and a l l w i t h i n t he o rgan i sa t i on .

The ha rd wo rk o f t he CDL’s managemen t and ou r emp loyees came i n to f r u i t i on when CDL ach ieved the SQC ce r t i f i ca t i on i n Feb rua r y 2009. Th i s ach ievemen t bodes we l l f o r us as i t i s a c l ea r i nd i ca t i on t ha t ou r managemen t s t r a teg ies a re i n p l ace and tha t we a re on t he r i gh t pa th to f u r t he r improve ou r bus i ness exce l l ence and l ong te rm sus ta i nab i l i t y.

CDL’s vision and mission are embraced by all our employees, helping to create a happy, dynamic and highly-committed workforce.


CITY SQuARE MALL – Designed to be an eco-friendly and community-friendly mall, the 700,000 square feet mall is projected to reduce its energy usage by almost 40% amounting to about 11 million kWh or over S$2 million energy savings per year compared to designs using standard industry codes. Beyond green features, there will also be programmes at the mall and integrated public urban park to raise eco-awareness among the shoppers and public.

QuAYSIDE ISLE COLLECTION AT SENTOSA COVE (RESIDENTIAL) – Residents can enjoy energy savings of up to S$2,500 per apartment annually from the energy efficient green features incorporated within their homes.

THE OCEANfRONT @ SENTOSA COVE – Residents at this exclusive waterfront condominium can expect to save up to S$1,000 per apartment per year from the energy-efficient air-conditioners. It is the first condominium in Singapore to incorporate a system to recycle water from apartment bathtubs, showers and wash basins for flushing of clubhouse toilets and irrigation of landscape.

EXAMPLES OF GREEN FEATURES BENEFITS

ENERGY- EFFIC IENCY

• Larges t therma l so la r and pho tovo l ta icpane ls ins ta l l ed on the roo fs in an o f f i ce bu i ld ing in S ingapore measur ing a to ta l o f 2 ,080 m 2. So la r a i r-cond i t i on ing i s based on ho t wate r f rom so la r pane ls d r i v ing an absorp t ion ch i l l e r wh ich in tu rn , p rov ides ch i l l ed wate r to the a i r-cond i t i on ing sys tem. The vacuum tube so la r pane ls hea t the wate r up to 88°C. The ho t wate r i s then used by the absorp t ion ch i l l e r to p roduce ch i l l ed wate r

• Eco- f r i end ly Arch i tec tu ra l Des ign :Low-Emiss i v i t y coa ted doub le g lazed v i s ion g lass and tw in-hor i zon ta l a lumin ium louver f ins fo r so la r shad ing

• To ta l energy sav ings o f 2 .7mi l l i on kWh per year

• To ta l energy consumpt ionreduc t ion o f 122,000 kWh

pe r year

WATER- EFFIC IENCY

• Ra inwate r Har ves t ing Sys temandAutomat ic I r r iga t ion Sys tem:Connec tedwi th t imers and ra inwate r sensors

• Water-e f f i c ien t f i t t i ngs w i th NEWaterand condensa te wate r co l l ec t ion f rom precoo led A i r Hand l ing Un i t s (AHUs ) fo r Coo l ing Tower

• The co l l ec t ion tank ho lds70m 3 o f wate r o r a 7-day s to rage capac i t y

• Zero po tab le wate r usage fo rwater c i s te rns and wate r less u r ina ls , i r r iga t ion and coo l ing tower w i th to ta l es t imated po tab le wate r sav ings o f 71,000 m 3 per year

INDOOR ENVIRONMENTAL QUALITY

• CarbonMonox ide sensors in the carpark ,CarbonD iox ide sensors and Co ldP lasma a i r pur i f i e rs ins ta l l ed in the AHUs fo r o f f i ces

• Improves a i r qua l i t y by over85% and occupat iona l hea l th and comfor t o f the bu i ld ing ’s users

7 & 9 Tampines Grande – Green Fact Sheet

7 & 9 TAMPINES GRANDE – A state-of-the-art new generation green office building with invested approximately 4% of the construction cost incorporating green features in the development’s green features. The 300,000 square feet building comprising twin eight-storey office blocks was constructed with eco-friendly materials and integrated with numerous green features.

BCA GREEN MARK PLATINUM DEVELOPMENTS BY CDL


2009 BUSINESS ENVIRONMENT SOCIAL

Ach ieved the S ingapore Qua l i t y C lass (SQC) cer t i f i ca t ion , at tes t ing to CDL’s overa l l bus iness exce l l ence s tandard based onthe in te rna t iona l l y -benchmarked bus iness exce l l ence f ramework .

On ly deve loper to be con fe r red the inaugura l BCA Bu i l t Env i ronment Leadersh ip P la t inumAward a t BCAAwards 2009.A lso rece i ved 8BCA Green Mark Awards , 1 Green Mark fo r O f f i ce In te r io r Award , 3Des ign &Eng ineer ing Sa fe ty Exce l l ence Awards ,2 Cons t ruc t ionExce l l ence Awards and 1 Un ive rsa l Des ign Award .

2008

F i rs t company f rom S ingapore to pub l i sh a soc ia l and env i ronmenta l repor t success fu l l y checked by G loba l Repor t ing In i t i a t i ve (GR I ) .

• • •

Ranked 7 th p lace among the 20 la rges t l i s ted compan ies in Hong Kong, Ma lays ia , Tha i land and S ingapore in CSR As ia Bus iness Barometer 2008, a s tudy on CSR d isc losure . Th is makes CDL the h ighes t ranked company f rom S ingapore .

• • •

Endorsed the Un i ted Nat ions (UN) Car ing For C l imate s ta tement to mob i l i se the bus iness communi t y to deve lop so lu t ions to reduce c l imate r i sk .

• • •

Winner o f th ree As ian CSR Awards 2008 Exce l lence awards wh ich honours compan ies in As ia fo r the i r p ro jec ts and p rogrammes in CSR.CDLwas on ly company f romS ingapore to be accorded.

• • •

Confe r red the Exce l l ence Award fo r Bes t Corpora te Soc ia l Respons ib i l i t y (CSR) by the Ins t i tu te o f Pub l i c Re la t ions o f S ingapore a t the PR ISM Awards 2008, in recogn i t i on o f i t s ou ts tand ing CSR s t ra tegy, wh ich takes a ho l i s t i c approach in impac t ing the communi t y th rough ded ica ted ou t reach p rogrammes.

• • •

CDL’s conce r ted e f fo r t s t owa rds sus ta i nab i l i t y s t a r t ed more t han a decade ago. I n t he cou rse o f ou r CSR t r ans fo rma t i on , t he re we re c r i t i ca l m i l e s tones wh ich have been p i vo ta l i n he lp i ng us to f u r t he r deve lop and s t r eng then ou r cause.

Be low a re some h igh l i gh t s o f ou r key bus i ness, env i ronmen ta l and soc i a l ach ievemen ts. The awa rds, acco l ades and p rog rammes a f f i rm ou r commi tmen t and e f fo r t s t owa rds be ing a soc i a l l y r espons ib l e co rpo ra te c i t i zen .

KEY HIGHLIGHTS

C D L’ S C S R M I L E S TO N E S

THE SOLITAIRE – Incorporation of various energy-saving and water-saving features will help reduce energy and water usage by an estimated 1.3 million kWh and 2,500 m3 per year. A rainwater irrigation system has also been installed for landscape maintenance.

CLIVEDEN AT GRANGE – Exceptional “Green” clubhouse with an innovative photo-catalyst coating with water film system to cool down the internal and external environment. The various energy-efficient features help reduce energy costs by approximately over S$400,000 per year.

CDL’S BCA GREEN MARK AWARDS (2005-2009)

Green Mark P lat inum• C i t y Square Ma l l• C l i vedena t Grange• Quays ide I s le Co l lec t ion a t Sen tosa Cove (Res iden t ia l )• 7 &9 Tampines Grande

Green Mark Gold Plus

• Buck ley 18*• CDLOf f i ce – C i t y House , Leve ls 2 & 5 (Green Mark f o r O f f i ce In te r io r ) • C i t y Square Res idences• L i v ia• She l fo rd Su i tes

Green Mark Gold• Anderson 18• Botann ia• C i t y House• Fu j i Xerox Towers• Mi l l enn iumRes idences @ Sukhumv i t , Bangkok• Monte rey Park Condomin ium• NewTechPark• OneShenton

Green Mark Cer t i f ied• But te rwor th 33• Cent ra l Ma l l (O f f i ce Tower )• Pa la i s Rena issance

From 2005 to 2009, CDL has had the h ighes t number o f BCA Green Mark deve lopmen ts w i t h a po r t f o l i o compr i s i ng 34 p rope r t i e s.

As a f u r t he r t es t amen t to ou r commi tmen t t owa rds deve lop ing ou t s t and ing s t a te -o f - t he-a r t g reen deve lopmen ts, CDL has t he honou r o f no t on l y be ing t he f i r s t p r i va te p rope r t y deve lope r to a t t a i n a BCA Green Mark p l a t i num awa rd bu t t he on l y one w i t h s i x p l a t i num awa rded p ro j ec t s unde r ou r be l t .

• The Oceanf ron t @Sentosa Cove

• The So l i ta i re

• S t .Reg is Ho te l &Res idences , S ingapore

• 11Tampines Concourse• The Ar te• Wi lk ie S tud io

• Parc Emi l y• P laza By The Park• Repub l i c P laza+

• Res idences @Eve lyn• SavannahCondoPark• Tr ibeca• The Sa i l @Mar ina Bay

• Pantech 21+

• The P ie r a t Rober tson

* Project managed by CDL+ Recertified in 2009



Ach ieved ISO 9001 and ISO 14001 cer t i f i ca t ion fo r 14 Inves tment P roper t i es .

Accorded the p innac le awards f rom the Office o f the Pres iden t o f the Repub l i c o f S ingapore .

- P res iden t ’s Soc ia l Ser v ice Award- Pres iden t ’s Award fo r the Env i ronment

P ioneered the “1°CUpCampa ign”in 11CDLcommerc ia l bu i ld ings .

- A ims to inc rease the a i r-cond i t i on ing tempera tu re range by 1°C to save energy and reduce carbon emiss ions .

P resen ted w i th the Pa t ron o f the Ar ts Award by the Nat iona l A r ts Counc i l fo r i t s sus ta ined con t r ibu t ion towards the p romot ion and deve lopment o f the a r ts in S ingapore s ince 1997.

F i rs t p r i va te deve loper to be awarded BCA Green Mark P la t inum – the h ighes t honour accorded fo r deve lop ing eco- f r i end ly p roper t i es by BCA.

- C i t y Square Ma l l ( commerc ia l )- The Oceanf ron t @ Sentosa Cove ( res iden t ia l )

P resen ted w i th the CSR Recogn i t i on Award by S ingapore Compact in recogn i t i on o f i t s sus ta ined commi tment towards CSR.

Accorded Watermark Award 2007 by PUB wh ich i s the h ighes t acco lade fo r F r iends o f Water who have made s ign ifican t con t r ibu t ions towards S ingapore ’s wate r sus ta inab i l i t y.

2008 cont ’d BUSINESS ENVIRONMENT SOCIAL

P ioneered i ssuance o f S ingapore ’s f i r s t Sukuk- l j a rah unsecured f inanc ing agreement , under a p roposed $1 b i l l i on I s lamic Mu l t i -Cur rency Med ium Term Notes Programme to tap new marke ts and inves to rs .

On ly deve loper to be accorded the inaugura l BCA Green Mark Champion Award a t BCA Awards 2008. A lso rece i ved 10 BCA Green Mark Awards and 2 Cons t ruc t ion Exce l l ence Awards .

Ach ieved ISO 14001: 2004 Env i ronmenta l Management Sys temfo r Corpora te Management and Opera t ions fo r a l l func t ions a t headquar te rs .

•

Accorded Work-L i fe Exce l l ence Award fo r commi tment toharmon ise work and persona l needs o f emp loyees .

Rece ived S ingapore H .E .A .L .T.H . (He lp ing Employees Ach ieveL i fe-Time Hea l th ) Award (P la t inum) award fo r ou ts tand ingWorkp lace Hea l th Promot ion p rogrammes.

Awarded the Min is te r fo r Home Af fa i r s (MHA) Award ( fo rmer l y known as Spec ia l Award ) , the h ighes t Home Team Nat iona l Ser v ice Awards fo r Employers fo r ou ts tand ing and cons is ten t con t r ibu t ion towards S ingapore ’s na t iona l de fence . S ta r t ing 2008,MHAa lso in t roducedthe Min is te r ’s Honours Ro l l and CDLhas been induc ted in to th i s new league.

A second- t ime rec ip ien t o f the Min is t r y o f Manpower (MOM) Workp lace Sa fe ty and Hea l th Awards 2008Deve loper Award andrema ins the on l y p r i va te deve loper to have rece i ved th i s honour.

On the honours ro l l o f the Pa t ron o f the Ar ts Award fo r the 12th consecut i ve year.

Ci ty House, CDL’s headquar ters , rece ived the Water-Ef f ic ientBui ld ing Cer t i f icate f rom Publ ic Ut i l i t ies Board (PUB) in recogni t ion of e f for ts to conser ve water.

Cer t i f ied as b izSAFE Par tner f rom the Workplace Safety and Heal th Counci l .



CDL i s the so le w inner fo r the Bes t Soc ia l Repor t ca tegor y o fthe S ingapore Env i ronmenta l & Soc ia l Repor t ing Awards 2005(SESRA) awarded by the Assoc ia t ion o f Char te red Cer t i f i ed Accountan ts (ACCA) , wh ich recogn ises o rgan isa t ions wh ich repor t and d isc lose env i ronmenta l o r soc ia l i n fo rmat ion .

Presen ted w i th the S ingapore Green P lan 2012 Award by the Min is t r y o f Env i ronment and Water Resources fo r l ead ing the indus t r y in good env i ronmenta l p rac t i ces and educa t ing i t s s takeho lders to adopt eco- f r i end ly hab i t s .

Obta ined Green Of f i ce Cer t i f i ca t ion (2005-2009) in recogn i t i on o f i t s commi tment to env i ronmenta l p ro tec t ion a t the workp lace by S ingapore Env i ronment Counc i l (SEC) .

Awarded the S ingapore H .E .A .L .T.H . Award 2005 (Go ld ) by the Hea l th Promot ion Board in recogn i t i on o f commendab le Workp lace Hea l th Programmes (WHP) to encourage employees to l ead hea l thy and v ib ran t l i ves .

CDL was l i s ted on the new FTSE/ASEAN Index and the FTSE/ASEAN 40 Index .

Repub l i c P laza ,Fu j i Xe rox Towers and C i t y House were con fe r redthe Energy Smar t Of f ice Award by Nat iona l Un ivers i t y o f S ingapore (Energy Susta inab i l i t y Un i t ) and Nat iona l Env i ronment Agency (NEA) .

2004

Awarded the p res t ig ious S ingapore Env i ronmenta l Ach ievement Award by SEC fo r i t s ded ica t ion and success as a g reen deve loper and advoca te .

P ioneered “Le t ’s L i ve Green !” – an ou t reach p rogramme toeduca te and in fo rmCDL’s homebuyers on how to p rac t i ce g reenhab i t s w i th in the i r homes.


Confe r red the To ta l De fence Awards and Home Team NS Awards fo r Employers 2007 (Spec ia l Award ) in recogn i t i on o f i t s suppor t and con t r ibu t ion towards Nat iona l Ser v ice (NS ) ac t i v i t i es in the S ingapore Armed Forces , S ingapore Po l i ce Force and S ingapore C iv i l De fence Force respec t i ve l y.

Confe r red the The D is t ingu ished Par tner o f the Nat iona l You thAch ievement (NYAA) Award in recogn i t i on o f i t s con t inuous pa r tnersh ip and suppor t towards you th deve lopment .

2006

The on ly p roper t y deve loper in S ingapore to be con fe r red the in te rna t iona l Roya l Soc ie ty fo r the Preven t ion o f Acc iden ts (RoSPA) Go ld Award fo r exce l l ence in Occupat iona l Hea l th and Sa fe ty management in the workp lace consecut i ve l y fo r four years f rom 2006 to 2009.

CDL i s the f i r s t l oca l MNC to w in the p res t ig ious Corpora teC i t i zen Award by the Nat iona l Vo lun teer & Ph i lan th ropy Cent re .

The on ly Go ld Award w inner in the Proper t y Deve loper ca tegor yin Reader ’s D iges t ’s Annua l Consumer BrandPre fe rence Award in2006. We were a lso awarded consecut i ve l y f rom 2006 to 2009.

Es tab l i shed a Work- l i f e Commi t tee to p romote work- l i f e and hea l th ac t i v i t i es fo r a we l l -ba lanced l i f es ty le .

Accorded the MOM Deve loper Award in Workp lace Hea l th andSafe ty Awards in 2006 and aga in in 2008. I t i s the on l y deve loper to be awarded th i s honour.

2005

One o f S ingapore ’s p ioneer ing g roup o f s igna to r ies to j o in the UN G loba l Compact to upho ld i t s 10 Pr inc ip les .

Confe r red the “Bes t in C lass” s ta tus by S to rebrand’s Soc ia l l y Respons ib le Inves tments (SR I ) fo r CDL’s CSRprogrammes.



P ioneered Pro jec t Eco-Of f i ce ou t reach p rogramme wi th SEC wh ich encourages o f f i ces to go g reen .

CDL was one o f the s i x compan ies in As ia (exc lud ing Japan ) to be inc luded in to the FTSE4Good Index ser ies l i s t ing in 2002. CDLcon t inues to be l i s ted in th i s index to-da te .

The inaugura l CDLS ingapore Scu lp tu re Award was launched. I t hass ince been he ld b ienn ia l l y.

2001

F i rs t S ingapore deve loper to es tab l i sh a fo rma l Cus tomer Re la t ionsh ip Management Ca l l Cen t re to p rompt l y and e f f i c ien t l y fo l l ow-up on cus tomer feedback and enqu i r i es .

Es tab l i shed CDL 5-Sta r EHS Assessment Sys tem to conduc tquar te r l y aud i t s by an independent aud i to r to mon i to r and ra i se EHS s tandards a t the cons t ruc t ion works i te .

Awarded S IAS Inves to rs ’ Cho ice Awards fo r be ing among S ingapore ’s Mos t Transparen t Compan ies (P roper t y ) by S ingapore Inves to rs Assoc ia t ion (S IAS ) and endorsed by the S ingapore Exchange. CDLhas con t inued to rece i ve th i s award annua l l y to-da te .

1999

Estab l ished Ci ty Sunshine Club, an employee vo lunteer programme.

1998

Pub l i shed “Beauty o f Na tu re” Corpora te Ca lendar Ser ies , vo lume 1 . Th is se r ies has con t inued fo r over a decade w i th the a im to suppor t the conser va t ion o f our na tu ra l and cu l tu ra l her i tage .


Awarded the S ingapore Fami ly-Fr iend ly Employer Award 2004 by a Tr ipar t i te Commit tee on Work-L i fe S t ra tegy, wh ich inc ludes theMin is t r y o f Communi ty Deve lopment andSpor ts ,Min is t r y o f Manpower(MOM), Nat iona l Trade Un ion Congress and S ingapore Nat iona l Employers Federa t ion fo r i t s fami ly- f r iend ly corpora te cu l tu re .

Format ion o f an employee we l fa re task fo rce S ta f fConnec t @ CDL a imed a t re in fo rc ing employees ’ sense o f be long ing and team sp i r i t .

2003

Es tab l i shed a fo rma l EHS po l i cy to ensure compl iance w i th a l l EHS requ i rements th roughout p roper t y deve lopment .

Ach ieved ISO 14001:1996 Env i ronmenta l Management Cer t i f i ca t ionfo r commi tment in ra i s ing env i ronmenta l s tandards in our deve lopments and bu i ld ing h igh-qua l i t y homes tha t fea tu re eco-f r i end ly fac i l i t i es .

Ach ieved OHSAS 18001 Hea l th and Sa fe ty Cer t i f i ca t ion fo r es tab l i sh ing a EHS po l i cy to mon i to r the env i ronmenta l impac t o f our opera t ions and improve workp lace sa fe ty.

2002

Es tab l i shed a fo rma l R isk Management F ramework to assess , iden t i f y, eva lua te , mon i to r and manage the Company ’s bus iness r i sks .

Launched Savannah CondoPark – S ingapore ’s f i r s t spec ia l l y -des igned Eco-Condo.


T A K I N G O W N E R S H I PA N D A C C O u N T A B I L I T Y

T O

CDL adopts and upho lds a h igh leve l o f corpora te governance l ike a respons ib le s teward tha t takes care o f the mul t ip le in teres ts o f a l l our s takeho lders . As a company wi th fo res ight , we s teer the bus iness sk i l fu l l y in today ’s compet i t i ve bus iness cl ima te , ant ic ipa t ing and avo id ing potent ia l bus iness r i sks by

p lann ing ahead to s tay ahead.

We set our s ights on ach iev ing h igher s tandards o f competency to es tab l i sh e leva ted leve ls o f t ransparency and corpora te management a t CDL. Th is wi l l make CDL a bet ter company tomorrow compared

to wha t i t i s today.

C O R P O R A T E G O V E R N A N C EA N D R I S K M A N A G E M E N T

F R O M

( i v ) and a l so fo r t he G roup Gene ra l Manage r. The Remune ra t i on Commi t t ee i n i t s r ev i ew ro l e, a l so ensu res t ha t r emune ra t i on po l i c i es o f t he Company a re gene ra l l y i n l i ne w i t h t he s t r a teg i c ob jec t i ves se t by, and co rpo ra te va l ues o f, t he Company. Such remune ra t i on f r amework , wh i ch i nc l udes bo th f i xed and va r i ab l e componen t s, t akes i n to accoun t , amongs t o the r f ac to r s, t he i nd i v i dua l ’s pe r fo rmance, t he pe r fo rmance o f t he G roup and i ndus t r y p rac t i ces.

Mr Kwek Leng Beng i s t he Execu t i ve Cha i rman o f t he Company and the Cha i rman o f t he Boa rd . The ho ld i ng o f t hese dua l ro l es by Mr Kwek Leng Beng, toge the r w i t h t he s t r eng ths b rough t t o t hese ro l es by a pe r son o f Mr Kwek Leng Beng ’s s t a tu re and expe r i ence, has been cons ide red by t he Boa rd . Tak ing i n to accoun t a l so t he i n te r na l con t ro l s i n p l ace to a l l ow e f f ec t i ve ove r s i gh t by t he Boa rd to ensu re app rop r i a t e ba l ance and au tho r i t y f o r t he Boa rd to exe rc i se ob jec t i ve dec i s i on-mak ing, t he Boa rd i s o f t he v i ew tha t t he re i s cu r ren t l y no necess i t y t o e f f ec t a sepa ra t i on o f t he ro l e o f t he Cha i rman o f t he Boa rd and the Execu t i ve Cha i rman , and these two ro l es may be pe r fo rmed by one pe rson to f ac i l i t a t e t he G roup ’s dec i s i on-mak ing and imp lemen ta t i on p rocess.

As t he mos t sen io r execu t i ve i n t he Company, Mr Kwek Leng Beng p rov ides ove ra l l l eade rsh ip and s t r a teg i c v i s i on fo r t he CDL Group. He i s ass i s t ed by h i s b ro the r, Mr Kwek Leng Joo, t he Manag ing D i rec to r o f t he Company, i n cha r t i ng b road d i r ec t i on , s t r a teg ies and po l i c i es o f t he CDL Group.

The Company has adop ted a Code o f Bus iness Conduc t and E th i cs wh ich se t s ou t t he e th i ca l va l ues and bus i ness s t anda rds o f t he Company. The Code p rov ides a commun icab le and unde rs t andab le f r amework fo r a l l D i r ec to r s and s t a f f t o obse r ve t he Company ’s p r i nc ip l es such as hones t y, i n t eg r i t y, r espons ib i l i t y and accoun tab i l i t y a t a l l l e ve l s o f t he o rgan i sa t i on and i n t he conduc t o f t he Company ’s bus i ness, i n t he i r r e l a t i onsh ips w i t h i t s cus tomers, supp l i e r s and amongs t emp loyees, i nc l ud ing s i t ua t i ons whe re t he re a re po ten t i a l con f l i c t s o f i n t e res t s.

S ince 2006, t he Company has a l so adop ted a Wh i s t l e -B low ing po l i c y and pu t i n p l ace p rocedu res whe reby s t a f f o f t he Company can ra i se i n con f i dence and on an anonymous bas i s l eg i t ima te bona f i de conce r ns on poss ib l e improp r i e t i e s re l a t i ng to accoun t i ng, f i nanc i a l r epo r t i ng, i n t e r na l con t ro l s and aud i t i ng ma t te r s w i t hou t f ea r o f r ep r i sa l s. W i t h i n t hese p rocedu res a re a r r angemen ts fo r i ndependen t i n ves t i ga t i on o f such ma t te r s r a i sed , f o r app rop r i a t e fo l l ow up ac t i on to be t aken and fo r r epo r t s t o be made to t he Aud i t Commi t t ee wh ich has ove r s i gh t r espons ib i l i t y o f t h i s po l i c y. Such po l i c y i s commun ica ted to a l l s t a f f company-w ide and i t s scope i nc l udes poss ib l e improp r i e t i e s i n vo l v i ng f r aud o r de l i be ra te e r ro r i n t he reco rd ing, ma in t a i n i ng, p repa ra t i on o r aud i t o f t he G roup ’s f i nanc i a l r eco rds and s t a temen ts, use o f t he G roup ’s asse t s, f unds o r p rope r t y f o r i l l ega l , imp rope r o r une th i ca l pu rposes, ac t s o f co r rup t i on o r b r i be r y, and imprope r ac t i ons o r om iss ions wh ich a re l i ke l y t o endange r emp loyees, cus tomers, supp l i e r s and/o r members o f t he pub l i c.

S ince 2002, t he Company has es tab l i shed a fo rma l r i s k managemen t f r amework , wh i ch i s benchmarked aga ins t i n t e r na t i ona l r i s k managemen t s t anda rds, t o enab le s i gn i f i can t bus i ness r i sks w i t h i n t he Company ’s p rope r t y i n ves tmen t , deve lopmen t and managemen t a rm to be i den t i f i ed , assessed , eva l ua ted , mon i to red and managed . Fu r t he r enhancemen ts to t he f r amework we re imp lemen ted i n 2007 w i t h t he ass i s t ance o f i ndependen t consu l t an t s to manage the s t r a teg i c bus i ness r i sks wh ich a re re f l ec t i ve o f t he changes i n marke t s, p roduc t s and emerg ing bes t p rac t i ces. The e f fo r t s o f t he Company i n t h i s a rea unde r l i ne t he impor t ance o f r i s k managemen t i n t he Company ’s bus i ness ac t i v i t i e s and as an essen t i a l componen t o f i t s p l ann ing p rocess. The Boa rd ’s ove ra l l r espons ib i l i t y i n t h i s a rea i s suppo r ted by t he Aud i t Commi t t ee wh ich has gene ra l ove r s i gh t o f t he Company ’s r i sk managemen t po l i c y and p rocedu res. Fo r more i n fo rma t i on de ta i l i ng t he Company ’s r i sk managemen t p rocess, p l ease see t he fo l l ow ing sec t i on on R i sk Managemen t .

Chap te r 3

C O R P O R AT E G O V E R N A N C E A N D R I S K M A N A G E M E N T

We a re commi t t ed to ma in t a i n i ng good co rpo ra te gove r nance i n acco rdance w i t h t he p r i nc ip l es and gu ide l i nes se t ou t i n t he Code o f Co rpo ra te Gove r nance re l eased by t he Counc i l on Co rpo ra te D i sc losu re and Gove r nance i n 2005 ( “CCDG Code” ) and the Company has adop ted a se t o f i n t e r na l gu ide l i nes on co rpo ra te gove r nance a l i gned w i t h t he CCDG Code. Fo r more de ta i l ed i n fo rma t i on on t he Company ’s co rpo ra te gove r nance p rac t i ces, p l ease re fe r t o t he Company ’s Co rpo ra te Gove r nance Repo r t as se t ou t i n t he Company ’s Annua l Repo r t 2008 (pages 23 to 30 ) .

The Company recogn i ses t he impor t ance o f s t rong co rpo ra te gove r nance i n t he pu r su i t o f con t i nued and sus ta i nab le g row th i n t he G roup ’s economic, soc i a l and env i ronmen ta l pe r fo rmance, and to ensu re e f f ec t i veness o f t he Company ’s CSR i n i t i a t i ves and ac t i v i t i e s.

The Boa rd o f D i r ec to r s ( t he “Boa rd” ) has gene ra l ove r s i gh t o f t he Company ’s bus i ness, w i t h i t s p r ima r y f unc t i ons be ing t he se t t i ng o f co rpo ra te po l i c y, p rov id i ng gu idance and app rov i ng s t r a teg i c p l ans and d i r ec t i on fo r t he Company, r ev i ew ing managemen t pe r fo rmance, es t ab l i sh i ng and ove r see ing t he f r amework fo r i n t e r na l con t ro l s and r i sk managemen t , and assum ing the respons ib i l i t y f o r good co rpo ra te gove r nance. As a t 11 May 2009, t he Boa rd compr i ses 8 members, a l l o f whom a re non-execu t i ve D i r ec to r s, excep t f o r t he Cha i rman and the Manag ing D i rec to r. The re i s a s t rong and i ndependen t e l emen t on t he Boa rd w i t h 5 ou t o f t he 6 non-execu t i ve D i r ec to r s cons ide red to be i ndependen t , each v i ewed by t he Boa rd as be ing capab le o f ma in t a i n i ng h i s ob jec t i v i t y and i ndependence a t a l l t imes i n t he ca r r y i ng ou t o f h i s du t i e s and respons ib i l i t i e s as an i ndependen t D i r ec to r.

The respons ib i l i t i e s o f t he Boa rd a re ca r r i ed ou t e i t he r d i r ec t l y by t he Boa rd o r t h rough commi t t ees es tab l i shed by t he Boa rd , wh i ch i nc l ude the fo l l ow ing :

( i ) The Boa rd Commi t t ee, compr i s i ng 5 D i r ec to r s, t he ma jo r i t y o f whom a re non-execu t i ve, wh i ch de l i be ra tes on ope ra t i ona l ma t t e r s requ i r i ng Boa rd rev i ew.

( i i ) The Aud i t Commi t t ee, compr i s i ng 4 non-execu t i ve and i ndependen t D i r ec to r s, wh i ch ass i s t s t he Boa rd , i n t e r a l i a , i n p rov id i ng an i ndependen t r ev i ew o f t he e f f ec t i veness o f t he CDL Group ’s f i nanc i a l r epo r t i ng p rocess and ma te r i a l i n t e r na l con t ro l s, encompass ing f i nanc i a l , ope ra t i ona l , comp l i ance and r i sk managemen t con t ro l s. Such rev i ew i s unde r t aken th rough a mon i to r i ng p rog ram i nvo l v i ng i n te r na l and ex te r na l aud i t s.

( i i i ) The Nomina t i ng Commi t t ee, compr i s i ng 3 D i rec to r s, t he ma jo r i t y o f whom inc l ud ing t he cha i rman a re non-execu t i ve and i ndependen t , wh i ch ass i s t s t he Boa rd i n t he recommenda t i on and rev i ew o f boa rd appo in tmen t s and re -appo in tmen t s, de te rm ina t i on o f i ndependence o f each D i rec to r and i den t i f i ca t i on o f new d i r ec to r s who have t he requ i s i t e know ledge, expe r i ence and sk i l l s t o con t r i bu te e f f ec t i ve l y t o t he Boa rd . The Nomina t i ng Commi t t ee a l so eva l ua tes t he Boa rd ’s pe r fo rmance as a who le on an annua l bas i s, us i ng ob jec t i ve and app rop r i a t e quan t i t a t i ve and qua l i t a t i ve c r i t e r i a w i t h qua r t e r l y pe r fo rmance i nd i ca to r s wh ich i nc l ude compar i sons o f t he Company ’s pe r fo rmance fo r t he pe r i od unde r rev i ew aga ins t t he Company ’s pe r fo rmance fo r t he co r respond ing pe r i od i n p rev ious yea r s and a l so aga ins t i ndus t r y pee rs and i ndus t r y ave rages.

( i v ) The Remune ra t i on Commi t t ee, compr i s i ng 3 non-execu t i ve and i ndependen t D i r ec to r s, wh i ch ass i s t s t he Boa rd i n t he rev i ew and recommenda t i on fo r endo rsemen t o f t he Boa rd , a f r amework o f r emune ra t i on and spec i f i c r emune ra t i on packages fo r each D i rec to r, i nc l ud ing t he Execu t i ve Cha i rman , t he Manag ing D i rec to r

con t ’d


Treasury and F inancia l R isks

The G roup i s exposed to f i nanc i a l r i s ks a r i s i ng f rom i t s ope ra t i ons and the use o f f i nanc i a l i n s t r umen ts. The key f i nanc i a l r i s ks i nc l ude c red i t r i s ks, l i qu id i t y r i s ks and marke t r i s ks, i nc l ud ing i n te res t r a te r i sks and fo re ign cu r rency r i sks. The G roup has a sys tem o f con t ro l s i n p l ace to c rea te an accep tab le ba l ance be tween the cos t o f r i s ks occu r r i ng and the cos t o f manag ing t he r i sks. The managemen t con t i nua l l y mon i to r s t he G roup ’s r i sk managemen t p rocess to ensu re t ha t an app rop r i a t e ba l ance be tween r i sk and con t ro l i s ach ieved . R i sk managemen t po l i c i es and sys tems a re rev i ewed regu l a r l y t o re f l ec t changes i n marke t cond i t i ons and the G roup ’s ac t i v i t i e s.

I t i s, and has been th roughou t t he cu r ren t and p rev ious f i nanc i a l yea r, t he G roup ’s po l i c y t ha t no de r i va t i ves sha l l be unde r t aken fo r specu l a t i ve pu rposes excep t f o r t he use as hedg ing i ns t r umen ts whe re app rop r i a t e and cos t e f f i c i en t .

Cred i t R isk - The G roup has a c red i t po l i c y i n p l ace and the exposu re to c red i t r i s k i s mon i to red on an ongo ing bas i s. C red i t eva l ua t i ons a re pe r fo rmed on a l l cus tomers requ i r i ng c red i t ove r a ce r t a i n amoun t . The G roup does no t r equ i r e co l l a t e ra l i n r espec t o f t hese f i nanc i a l a sse t s.

Transac t i ons i nvo l v i ng f i nanc i a l i n s t r umen ts a re en te red i n to on l y w i t h coun te rpa r t i e s t ha t a re o f accep tab le c red i t qua l i t y. Cash and f i xed depos i t s a re p l aced w i t h banks and f i nanc i a l i n s t i t u t i ons wh ich a re regu l a ted .

L iqu id i t y R isk - The G roup mon i to r s i t s l i qu id i t y r i s k and ma in t a i ns a l e ve l o f cash and cash equ i va l en t s, and c red i t f ac i l i t i e s deemed adequa te by managemen t to f i nance the G roup ’s ope ra t i ons and to m i t i ga te t he e f f ec t s o f f l uc tua t i ons i n cash f l ows.

a reas. The imp lemen ta t i on and use o f a sys tem o f i n t e r na l con t ro l s, and ope ra t i ng, r epo r t i ng and mon i to r i ng p rocesses and p rocedu res ( i nc l ud ing p rocesses i nvo l v i ng due d i l i gence and co l l a t i on o f ma rke t i n t e l l i gence and feedback ) , suppo r ted by i n fo rma t i on t echno logy sys tems and cons tan t deve lopmen t o f human resou rce sk i l l s t h rough rec ru i tmen t and t r a i n i ng, a re impor t an t e l emen ts o f t he r i sk managemen t f r amework , t o m i t i ga te r i sks re l a t i ng to p roduc t and se r v i ce qua l i t y assu rance managemen t , cos t s con t ro l managemen t , des ign and p roduc t i nnova t i on , ma rke t i n t e l l i gence, marke t i ng / sa l es and l eas i ng managemen t , f i nanc i a l con t ro l managemen t and regu l a to r y comp l i ances i n t he Company ’s ope ra t i ons. The ma in tenance o f adequa te i nsu rance cove rage fo r t he Company ’s asse t s, and the p ro tec t i on o f and con t i nued i nves tmen t i n t he secu r i t y and i n teg r i t y o f i t s i n fo rma t i on t echno logy sys tems and da tabase wh ich a re h igh l y i n t eg ra ted w i t h i t s bus i ness p rocesses, a re a l so pa r t o f t he Company ’s con t ro l p rocesses fo r t he p ro tec t i on o f i t s asse t s.

Investment and Por t fo l io R isks

R isk eva l ua t i on fo rms an i n teg ra l aspec t o f t he Company ’s i n ves tmen t s t r a tegy. Ba l anc ing r i sk and re tu r n ac ross asse t t ypes and geog raph i c reg ions a re p r ima r y cons ide ra t i ons to ach ieve con t i nued co rpo ra te p ro f i t ab i l i t y and po r t f o l i o g row th . Th i s r i s k assessmen t i nc l udes mac ro and p ro j ec t spec i f i c r i s ks ana l y s i s encompass ing r i go rous due d i l i gence, f i nanc i a l mode l l i ng and sens i t i v i t y ana l y s i s on key i nves tmen t assumpt ions and va r i ab l es. Each i nves tmen t p roposa l i s ob jec t i ve l y eva l ua ted to f i t t he co rpo ra te s t r a tegy and i nves tmen t ob jec t i ve. po ten t i a l bus i ness syne rg i es i nc l ud ing co l l abo ra t i on r i sks assessmen ts a re i den t i f i ed ea r l y t o ensu re bus i ness pa r t ne r sh ip ob jec t i ves and v i s i ons a re we l l - a l i gned and co l l abo ra t i on pa r t ne r s a re l i ke -m inded and compa t i b l e.

RISK MANAGEMENT

R isk managemen t con t i nues to p l ay an impor t an t pa r t i n t he Company ’s bus i ness ac t i v i t i e s and i s an essen t i a l componen t o f i t s p l ann ing p rocess. The Boa rd has ove ra l l r espons ib i l i t y f o r de te rm in i ng t he na tu re o f i t s bus i ness r i sks and to ensu re t ha t r i s ks i n new and ex i s t i ng bus i nesses a re managed and bus i ness p l ans and s t r a teg ies acco rd w i t h t he r i sks appe t i t e t ha t t he G roup unde r t akes to ach ieve i t s co rpo ra te ob jec t i ves.

To ass i s t t he Boa rd i n i t s r i s k managemen t ove r s i gh t , t he Aud i t Commi t t ee repo r t s t o t he Boa rd on ma t te r s re l a t i ng to t he r i sk managemen t po l i c i es and sys tems o f t he Company. A R i sk Managemen t Commi t t ee ( “RM Commi t t ee ” ) , whose members compr i se sen io r managemen t , i s r espons ib l e fo r ma in t a i n i ng a r i sk managemen t f r amework wh ich w i l l p rov ide t he Boa rd w i t h a sys tema t i c and en te rp r i se -w ide v i ew o f t he r i sks i n vo l ved i n p rope r t y i n ves tmen t , deve lopmen t and managemen t ac t i v i t i e s, and ass i s t s i n t he imp lemen ta t i on o f r i s k managemen t po l i c i es and sys tems.

The RM Commi t t ee had , s i nce 2002, es tab l i shed a fo rma l r i s k managemen t f r amework to enab le s i gn i f i can t bus i ness r i sks w i t h i n t he Company ’s p rope r t y i n ves tmen t , deve lopmen t and managemen t a rm to be i den t i f i ed , assessed , eva l ua ted , mon i to red and managed . The RM Commi t t ee has du r i ng t he yea r unde r rev i ew engaged a f i rm o f i ndependen t consu l t an t s to ass i s t i n imp lemen t i ng t he fo l l ow ing enhancemen ts to i t s ex i s t i ng r i sk managemen t f r amework :

•Fo rma l i sed p rocesses t ha t enab le ope ra t i ona l r i s ks to bei den t i f i ed , assessed , eva l ua ted , mon i to red and managed .

•Fo rma l i sed p rocesses t ha t enab le t he repo r t i ng o f occu r rence o rpo ten t i a l occu r rence o f s i gn i f i can t r i s k even t s.

The r i sks i nco rpo ra ted w i t h i n t he Company ’s fo rma l r i s k managemen t f r amework i nc l ude the fo l l ow ing :

Operat ing R isks

The r i sk managemen t f r amework i s i n t eg ra ted i n to t he managemen t p rocesses a t ope ra t i ona l l e ve l s, w i t h t he respec t i ve managemen t a t d i v i s i ona l and depa r tmen ta l l e ve l s be ing respons ib l e fo r i den t i f y i ng, assess i ng, m i t i ga t i ng and manag ing t he ope ra t i ng r i sks w i t h i n each o f t he i r f unc t i ona l

The RM Commi t t ee w i l l r epo r t a t l eas t once annua l l y, t o t he Aud i t Commi t t ee on t he ove ra l l s t r a teg i c and ope ra t i ona l r i s ks pos i t i ons, i nc l ud ing m i t i ga t i ng measu res and t r ea tmen t p l ans. pe r i od i ca l l y, t he RM Commi t t ee w i l l r epo r t t o t he Aud i t Commi t t ee on t he occu r rence o r po ten t i a l occu r rence o f s i gn i f i can t r i s k even t s. The Aud i t Commi t t ee has rev i ewed the Company ’s r i sk managemen t sys tem, po l i c i es, p rocesses and p rocedu res and i s sa t i s f i ed t ha t t he re a re adequa te i n t e r na l con t ro l s i n p l ace to manage the s i gn i f i can t r i s ks i den t i f i ed .

The p rocedu res and p rocesses w i t h i n t he fo rma l r i s k managemen t f r amework , benchmarked aga ins t o the r i n t e r na t i ona l s t anda rds and cu r ren t r i s k managemen t p rac t i ces, enab le t he Company to regu l a r l y r ev i ew i t s s i gn i f i can t s t r a teg i c bus i ness r i sks ; cons ide r t he e f f ec t i veness o f t he G roup ’s sys tem o f i n t e r na l con t ro l s t o l im i t , m i t i ga te and mon i to r i den t i f i ed r i sks ; and cons ide r t he imp lemen ta t i on o f f u r t he r ac t i on p l ans to manage s t r a teg i c bus i ness r i sks wh ich a re re f l ec t i ve o f changes i n marke t s, p roduc t s and emerg ing bes t p rac t i ces. The con t ro l s se t ou t w i t h i n t he r i sk managemen t f r amework a re i n t ended to manage, and no t expec ted to e l im ina te, a l l r i s ks o f f a i l u re to ach ieve bus i ness ob jec t i ves. These con t ro l s p rov ide reasonab le, bu t no t abso lu te, assu rance aga ins t ma te r i a l m i ss t a temen t o f managemen t and f i nanc i a l i n fo rma t i on o r aga ins t f i nanc i a l l o sses and f r aud .


i n fo rma t i on da tabase a r i s i ng f rom such po ten t i a l t h rea t s. A Bus iness Con t i nu i t y Managemen t Commi t t ee ( “BCp Commi t t ee ” ) , whose members compr i se sen io r managemen t , i s r espons ib l e fo r ove r see ing t he ma in tenance o f t he BCp. p rocedu res and p rocesses o f t he BCp i nc l ude i den t i f i ca t i on o f a l t e r na te recove r y cen t res, ope ra t i ona l p rocedu res to enab le commun ica t i on , con t i nu i t y o f c r i t i ca l bus i ness f unc t i ons and recove r y o f da tabase i n t he even t o f a c r i s i s i nc iden t . pe r i od i c i nc iden t managemen t d r i l l s a re conduc ted to f am i l i a r i se emp loyees w i t h t he emergency response and c r i s i s managemen t p l ans o f t he Company. The p l ans to ca r r y ou t pe r i od i c t es t s on BCp as we l l a s t he resu l t s o f t hese t es t s a re rev i ewed by t he BCp Commi t t ee annua l l y and b i -annua l l y by t he Aud i t Commi t t ee.

The G roup ’s ho te l a rm, unde r M i l l enn ium & Cop tho r ne Ho te l s p l c ( “M&C” ) , i nc l udes w i t h i n i t s i n t e r na l con t ro l f r amework , p rocesses fo r t he managemen t o f key r i sks to t he success o f t he M&C g roup, wh ich a re pe r i od i ca l l y r ev i ewed by M&C’s aud i t commi t t ee and boa rd o f d i r ec to r s. These p rocesses i nc l ude, bu t a re no t l im i t ed to, r i s ks re l a t i ng to t he p ro tec t i on o f t he M&C g roup ’s b rands and i n te l l ec tua l p rope r t y r i gh t s, exposu re to l i t i ga t i on , ma rke t sha re and compe t i t i on , human resou rce, cus tomer sa t i s f ac t i on , hea l t h and sa fe t y i s sues, t r easu r y and f i nanc i a l pe r fo rmance, acqu i s i t i on oppo r tun i t i e s, i n su rance, ho te l and i n fo rma t i on t echno logy sys tems and i n f r as t r uc tu re, and g loba l and reg iona l po l i t i ca l , economic and f i nanc i a l ma rke t deve lopmen ts.

Human Resource R isks

The Company recogn i ses human resou rce as an impor t an t con t r i bu t i ng f ac to r t owa rds t he s t ab le g row th o f t he Company, and acco rd ing l y e f f o r t s a re t aken to enhance the p rocesses fo r r ec ru i tmen t , compensa t i on , t r a i n i ng and deve lopmen t o f emp loyees. I den t i f i ca t i on o f co re compe tenc ies i s c r i t i ca l i n t he emp loyee se l ec t i on and deve lopmen t p rocesses, and the imp lemen ta t i on o f pe r fo rmance assessmen t and managemen t p rog rammes, coup led w i t h ca ree r deve lopmen t and t r a i n i ng p rog rams, a re pa r t o f t he Company ’s human resou rce s t r a tegy to improve wo rk pe r fo rmance, max im i se compe tenc ies, i nc rease s t a f f commi tmen t and re ten t i on , and deve lop f u r t he r an e f f ec t i ve success ion p l ann ing p rog ramme w i t h i n t he o rgan i sa t i on . The managemen t a l so suppo r t s wo rk-l i f e ha rmony p rog rammes and f am i l y - f r i end l y po l i c i es as pa r t o f i t s e f f o r t s t o he lp emp loyees ach ieve a ba l anced l i f e be tween work and f am i l y and a t t he same t ime c rea te a qua l i t y wo rkp l ace.

Cr is is R isks

Opera t i ng i n an env i ronmen t w i t h po ten t i a l t h rea t s o f t e r ro r i sm, ep idem ic ou tb reaks and i n fo rma t i on sys tems f a i l u re, t he managemen t has pu t i n p l ace a company-w ide Bus iness Con t i nu i t y p l an ( “BCp” ) t o m i t i ga te t he r i sks o f i n t e r rup t i on and ca tas t roph i c l oss to i t s ope ra t i ons and

I n te res t Ra te R isk - The G roup ’s exposu re to marke t r i s k changes i n i n t e res t r a tes re l a tes p r ima r i l y t o i t s i n t e res t -bea r i ng f i nanc i a l a sse t s and deb t ob l i ga t i ons. The G roup adop t s a po l i c y o f manag ing i t s i n t e res t r a te exposu re by ma in t a i n i ng a deb t po r t f o l i o w i t h bo th f i xed and f l oa t i ng r a tes o f i n t e res t . Whe re app rop r i a t e, t he G roup uses i n te res t r a te de r i va t i ves to hedge i t s i n t e res t r a te exposu re fo r spec i f i c unde r l y i ng deb t ob l i ga t i ons.

Fore ign Cur rency R isk - The G roup i s exposed to fo re ign cu r rency r i sks on sa l es, pu rchases and bo r row ings t ha t a re denomina ted i n a cu r rency o the r t han t he respec t i ve f unc t i ona l cu r rency o f t he G roup ’s en t i t i e s.

The G roup manages i t s f o re ign exchange exposu re by a po l i c y o f ma tch ing rece ip t s and paymen ts, and asse t pu rchases and bo r row ings i n each i nd i v i dua l cu r rency. Fo rwa rd fo re ign exchange con t r ac t s a re used pu re l y as a hedg ing too l , whe re an ac t i ve marke t f o r t he re l evan t cu r renc ies ex i s t s, t o m in im i se t he G roup ’s exposu re to movemen ts i n exchange ra tes on f i rm commi tmen t s and spec i f i c t r ansac t i ons.

Whereve r necessa r y, t he G roup f i nances i t s p rope r t y, p l an t and equ ipmen t pu rchases by us i ng t he re l evan t l oca l cu r rency cash resou rces and a r r ang ing fo r bank f ac i l i t i e s denomina ted i n t he same cu r rency. Th i s enab les t he G roup to l im i t t r ans l a t i on exposu re to i t s ba l ance shee t a r i s i ng f rom conso l i da t i on o f t he G roup ’s ove r seas ne t asse t s.


E N V I R O N M E N T A L S u S T A I N A B I L I T Y

T O

Env i ronmenta l sus ta inab i l i t y i s an inex t r icab le par t o f the way we th ink and do our bus iness . A t CDL, we be l ieve tha t ever y green e f fo r t w i l l make a d i f fe rence in br ing ing our bus iness closer in a harmony wi th the

env i ronment we l i ve in .

for more than a decade, CDL has been ra is ing the s tandards o f our env i ronmenta l per formance, espec ia l l y in the deve lopment o f green bu i ld ings in S ingapore . We remain insp i red and mot iva ted to take bo ld and innova t ive s teps to dr ive our bus iness to make the next

green leap towards env i ronmenta l exce l lence.

G O O D P R A C T I C E S

F R O M

when repo r t i ng o f env i ronmen ta l - re l a t ed acc iden t s, comp la i n t s, i nc iden t s, non-comp l i ance and non-con fo rm i t y. A t CDL work s i t e s, we a l so p rov ide a ho t l i ne number whe re t he pub l i c can repo r t t o us.

COMPLIANCE

CDL i s commi t t ed to comp l y i ng w i t h a l l app l i cab le l ega l r equ i r emen ts. Comp l i ance eva lua t i ons a re ca r r i ed ou t qua r t e r l y, espec i a l l y when the re a re new regu l a t i ons o r changes to t he l ega l r equ i r emen ts. We a l so cons tan t l y assess ou r ac t i v i t i e s and ope ra t i ons to ensu re f u l l comp l i ance to t he regu l a ted l im i t s en fo rced by t he l oca l gove r n i ng au tho r i t i e s such as t he BCA, NEA, pUB and S ingapo re C i v i l De fence Fo rce (SCDF ) and o the r r e l evan t en fo rce r s whe re app rop r i a t e.

CDL a l so t akes measu res to ensu re regu l a to r y requ i r emen ts a re t aken i n to cons ide ra t i on a t t he p l ann ing s t age fo r any ac t i v i t y o r ope ra t i on . Hence, we a re p roac t i ve i n i n f l uenc ing and engag ing ou r s t akeho lde r s, such as t he a rch i t ec t s, con t r ac to r s, des igne rs and eng inee rs to embrace sa fe and env i ronmen ta l l - f r i end l y des igns, p l ans and p rog rammes. CDL con t i nues to fo l l ow th rough the comp l i ance s t a tus du r i ng t he cons t ruc t i on and ope ra t i ona l phase. Th i s i s done th rough regu l a r aud i t s and ou r CDL 5-S ta r EHS Assessmen t sys tem.

ENVIRONMENTAL ASPECTS

Manag ing t he env i ronmen ta l aspec t s i s a key e l emen t i n t he EMS. We iden t i f y s i gn i f i can t env i ronmen ta l aspec t s fo r ac t i v i t i e s, p roduc t s o r se r v i ces t ha t can po ten t i a l l y have c r i t i ca l nega t i ve env i ronmen ta l impac t . The r i sk assessmen t c r i t e r i a used cons i s t o f t he l i ke l i hood o f t he occu r rence, seve r i t y o f t he impac t and con t ro l measu res.

The key s i gn i f i can t env i ronmen ta l aspec t s o f ou r bus i ness a re ene rgy, wa te r and was te. I n t he l a s t f ew yea r s, CDL has p l aced ou r p r i o r i t y on reduc ing ene rgy use ac ross ou r ope ra t i ons i n r ecogn i t i on o f t he impac t o f g loba l wa rm ing and c l ima te change be ing a ma jo r g loba l env i ronmen ta l cha l l enge. I n add i t i on , ou r f ocus a l so i nc l udes wa te r managemen t and

was te m in im i sa t i on as S ingapo re does no t have abundan t na tu ra l f r eshwa te r sou rces and has l im i t ed d i sposa l s i t e s.

CDL imp lemen ts and eva lua tes measu res to m i t i ga te a l l s i gn i f i can t env i ronmen ta l aspec t s. Th i s i s done th rough se t t i ng ob jec t i ves and t a rge t s, es t ab l i sh i ng p rog rammes and/o r pu t t i ng i n p l ace wo rk p rocedu res and gu ide l i nes. The gu id i ng p r i nc ip l e o f t he m i t i ga t i ng measu res i s t o fo l l ow the h i e ra rchy o f con t ro l , i nc l ud ing e l im ina t i on , subs t i t u t i on , i so l a t i on , use o f eng inee r i ng con t ro l , use o f adm in i s t r a t i ve con t ro l and l a s t o f a l l , use o f pe r sona l p ro tec t i ve equ ipmen t .

Due to t he d i f f e ren t na tu re o f ope ra t i ons and ac t i v i t i e s, t he p ro j ec t s D i v i s i on , p rope r t y & Fac i l i t i e s Managemen t D i v i s i on , and Co rpo ra te Managemen t and Ope ra t i ons w i l l each eva lua te i t s se t o f s i gn i f i can t env i ronmen ta l aspec t s and es tab l i sh t he co r respond ing env i ronmen ta l ob jec t i ves and t a rge t s and p rog rammes.

EMS AUDIT

CDL recogn i ses t ha t we mus t r egu l a r l y aud i t ou r ope ra t i ons and ac t i v i t i e s i n o rde r t o know wha t i s e f f ec t i ve and wha t can be improved upon . CDL’s EMS aud i t p rog ramme i nvo l ves t eams o f i n t e r na l and ex te r na l aud i t o r s conduc t i ng aud i t s a t l eas t once a yea r.

I n t e r na l aud i t s a re essen t i a l t o ensu re t he EMS has been p rope r l y p l anned , imp lemen ted and ma in t a i ned i n con fo rmance w i t h t he ISO 14001 i n te r na t i ona l s t anda rd and to i den t i f y a reas o f improvemen t . The ac tua l f r equency o f i n t e r na l aud i t s depends on pas t aud i t r esu l t s as we l l a s t he po ten t i a l r i s ks and impor t ance assoc i a ted w i t h t he ac t i v i t y o r ope ra t i on . Typ i ca l l y, each p ro j ec t deve lopmen t i s t o be aud i t ed a t l eas t once i n i t s p ro j ec t cyc l e and each aud i t shou ld cove r a l l t h ree s t ages, i . e. , p l ann ing, p rocu remen t and cons t ruc t i on .

The Company i s a l so sub jec t t o ex te r na l aud i t s, conduc ted by an acc red i t ed ce r t i f i ca t i on body o f t he i n i t i a l ce r t i f i ca t i on and su r ve i l l ance v i s i t s. Ex te r na l su r ve i l l ance aud i t s a re conduc ted each yea r t o ve r i f y t ha t t he EMS con t i nues to be ma in t a i ned , imp lemen ted and to de l i ve r con t i nua l imp rovemen ts un t i l t he nex t r e -ce r t i f i ca t i on cyc l e.

The bu i l d i ngs sec to r con t r i bu tes abou t 16% o f S ingapo re ’s g reenhouse gases. Bu i l d i ngs a re a l so accoun tab le fo r s i gn i f i can t e l ec t r i c i t y and wa te r consumpt ion and was te gene ra t i on . As a g reen and respons ib l e deve lope r, CDL recogn i ses t he impac t ou r bu i l d i ngs may have on t he env i ronmen t and i s commi t t ed to reduc ing ou r env i ronmen ta l impac t .

CDL ca res fo r t he env i ronmen t and ou r s t akeho lde r s. Ou r EHS po l i c y se t s t he s t r a teg i c d i r ec t i on fo r a l l emp loyees to t ake p rac t i ca l e f f o r t s t o ensu re e f f ec t i ve EHS managemen t so as to c rea te a “Sa fe and G reen” cu l t u re, con t i nua l l y s t r i v i ng to conse r ve resou rces and p reven t po l l u t i on .

Ou r env i ronmen ta l managemen t focuses on ene rgy and wa te r conse r va t i on , r ecyc l i ng and m in im i sa t i on o f was te ac ross ou r ope ra t i ons.

CDL’S ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

The EMS, wh ich i s based on a p l an-Do-Check-Ac t mode l , i s i n t eg ra ted i n to CDL’s ove ra l l ope ra t i ons. I t p rov ides a sys tema t i c app roach to m in im i se ou r ope ra t i ona l impac t on t he env i ronmen t and p rov ides t he f r amework fo r con t i nua l imp rovemen t i n ou r env i ronmen ta l pe r fo rmance.

CDL es tab l i shed the Co rpo ra te EHS po l i c y i n 2003 and a l l ope ra t i ons a re to adhe re to t he p r i nc ip l es. W i th t he po l i c y i n p l ace, CDL (p ro j ec t s D i v i s i on ) a t t a i ned the ISO 14001 EMS and OHSAS 18001 Occupa t i ona l Hea l t h and Sa fe t y Managemen t (OHSMS) Sys tem ce r t i f i ca t i ons fo r p rope r t y deve lopmen t and p ro j ec t managemen t i n t he same yea r.

CDL (p rope r t y & Fac i l i t i e s Managemen t D i v i s i on ) was awa rded the I n teg ra ted Managemen t Sys tem o f ISO 9001 Qua l i t y Managemen t Sys tem (QMS) and ISO 14001 EMS s tanda rds fo r p rope r t y and f ac i l i t i e s managemen t i n 2007.

I n 2008, CDL had a l l ou r co re d i v i s i ons and suppo r t i ng ope ra t i ons

Chap te r 4

C O N S E R V I N G T H E E N V I R O N M E N T

con fo rm to t he ISO 14001 ce r t i f i ca t i on . The scope cove rs a l l headqua r te r ac t i v i t i e s o f G roup F i nance and Accoun t s, Co rpo ra te A f f a i r s, p ro j ec t s D i v i s i on , p rope r t y & Fac i l i t i e s Managemen t D i v i s i on , Ma rke t i ng /Leas i ng, I n fo rma t i on Sys tems, Bus iness Deve lopmen t and Asse t Managemen t , Cus tomer Re l a t i onsh ip Managemen t and I n te r na l Aud i t . Th i s has been a s i gn i f i can t deve lopmen t , w i t h a l l pa r t s o f t he bus i ness now adhe r i ng to t he EMS.

TRAINING, AWARENESS AND COMMUNICATION

CDL acknow ledges t ha t a l l emp loyees, i nc l ud ing t hose wo rk i ng on beha l f o f t he Company such as ou r con t r ac to r s and supp l i e r s whose j obs may cause s i gn i f i can t env i ronmen ta l impac t s, shou ld have t he necessa r y expe r t i se, t r a i n i ng o r expe r i ence to ca r r y ou t t he i r wo rk .

Tra i n i ng and awa reness p rog rammes a re p rov ided to i nc rease t he env i ronmen ta l consc iousness o f emp loyees and con t r ac to r s. A l l new emp loyees a re g i ven a de ta i l ed i n t roduc t i on to CDL’s Co rpo ra te EHS po l i c y and the i r r espons ib i l i t i e s i n t he EMS. We a l so s t rong l y encou rage ou r emp loyees to a t t end ex te r na l sem ina r s and workshops to upg rade the i r sk i l l s o r know ledge re l a ted to env i ronmen ta l managemen t . As fo r ou r con t r ac to r s, we have been conduc t i ng t he CDL 5-S ta r EHS Rev iew Semina r f o r t hem on a qua r t e r l y bas i s s i nce 2001 to r a i se t he i r EHS s t anda rds. Bes t p rac t i ces a re sha red du r i ng t he rev i ew sess ions to encou rage pee r l ea r n i ng.

CDL a l so be l i e ves i n engag ing t he suppo r t o f ou r s t akeho lde r s, i nc l ud ing emp loyees and ex te r na l i n t e res ted pa r t i e s, t o ach ieve exce l l en t env i ronmen ta l pe r fo rmance. We p rov ide va r i ous modes o f commun ica t i on to sha re ou r commi tmen t s, bes t p rac t i ces, p rog rammes and env i ronmen ta l pe r fo rmance as we l l a s so l i c i t t he i r f eedback and sugges t i ons fo r con t i nua l imp rovemen t . We a re commi t t ed to t ake a l l necessa r y ac t i on to p reven t t he occu r rence o f po ten t i a l non-con fo rmance o r r ecu r rence o f non-con fo rmance. A l l CDL emp loyees a re encou raged to be fo r t hcoming


Water

CDL’s wa te r managemen t po l i c i es a t t he wo rk s i t e s a re based on the p r i nc ip l es o f r educ ing, r ecyc l i ng and reus i ng wa te r, and to p reven t wa te r po l l u t i on i n ou r wa te rways.

F rom ou r benchmark assessmen t s tud ies f rom 2005 to 2007, t he ave rage wa te r use a t t he wo rk s i t e wou ld have been app rox ima te l y 2m 3/m 2 o f GFA bu i l t . We es t ima te CDL has conse r ved 229,581m 3 o f wa te r a t a l l ou r wo rk s i t e s i n 2008 w i t h ou r va r i ous wa te r managemen t i n i t i a t i ves.

Th i s i nc l udes i nco rpo ra t i ng wa te r-e f f i c i en t f ea tu res used on-s i t e as we l l a s w i t h i n t he new deve lopmen ts, such as t he wa te r r ecyc l i ng sys tem, senso r t aps o r se l f - c l os i ng t aps, wa te r-e f f i c i en t f i t t i ngs app roved unde r

Tota l Water (3) Used at Work S i tesm 3

Tota l Water Used (3) Per Square Metre of GFA at Work S i tesm 3/m 2

(3) Water is defined as fresh potable water purchased from the public Util it ies Board (pUB).

t he Wa te r E f f i c i ency Labe l l i ng Scheme (WELS) , wa te r l ess u r i na l s, and au toma t i c f l u sh and dua l f l u sh sys tems fo r t o i l e t s.

Some p ro j ec t s when comp le ted w i l l a l so have a r a i nwa te r ha r ves t i ng sys tem fo r l andscape i r r i ga t i on and NEWate r f o r f l u sh i ng o f wa te r c i s t e r ns and u r i na l s. Th i s w i l l f u r t he r he lp to dec rease po tab le wa te r usage.

A va r i e t y o f S i l t and Ea r t h Con t ro l Measu res a re imp lemen ted on a l l wo rk s i t e s. The wa te r d i scha rged i n to t he wa te rways rema ins cons i s t en t l y i n t he r ange o f be tween 10 and 15 mg/ l i t r e fo r To ta l Suspended So l i ds (TSS) , we l l be low the l ega l l im i t o f 50 mg/ l i t r e.

123,348

79,012

130,263

154,273

1.5

0.9

0.70.68

2005 2006 2007 2008 2005 2006 2007 2008

ENVIRONMENTAL AND SAFETY DATA

CDL’s env i ronmen ta l pe r fo rmance o f CDL i nc l udes da ta f rom p ro jec t s, p rope r t y & Fac i l i t i e s Managemen t , Co rpo ra te Managemen t and Ope ra t i on and to t a l summar y o f ene rgy used and ca rbon em iss ions.

PROjECTS DIV IS ION

pro jec t s D i v i s i on ’s ma in ac t i v i t i e s a re p rope r t y Deve lopmen t and p ro j ec t Management . The key s ign i f i can t env i ronmenta l aspec ts fo r p ro jec ts D i v i s ion a re energy, wa te r, was te and b iod i ve rs i t y. The da ta be low p rov ided by ou r ma in con t rac to rs h igh l i gh ts the env i ronmenta l and sa fe t y pe r fo rmance a t the work s i t es o f CDL deve lopments i n S ingapore.

p ro j ec t s D i v i s i on has se t spec i f i c env i ronmen ta l ob jec t i ves and t a rge t s a t t he wo rk s i t e s, p l ease re fe r t o page 56 fo r de ta i l s.

Energy

Dur i ng t he p l ann ing p rocess, CDL uses e l ec t r i c i t y d i r ec t l y f r om the power g r i d supp l y t h rough a sub-s ta t i on a t cons t ruc t i on s t age wheneve r poss ib l e. Th i s p romotes be t t e r u t i l i s a t i on o f e l ec t r i c i t y f r om a c l eane r ene rgy sou rce and s ign i f i can t l y r educes t he use o f gene ra to r se t s. The use o f e l ec t r i c i t y g r i d power supp l y gene ra tes l owe r em iss ions o f g reenhouse gases, su l f u r ox ides, n i t r ogen ox ides and pa r t i cu l a tes i n t he env i ronmen t as compared to us i ng a gene ra to r.

I n 2008, w i t h a focus on ene rgy conse r va t i on a t ou r wo rk s i t e s, we have f u r t he r r educed the ene rgy use to 43 kWh/m 2 o f G ross F loo r A rea (GFA ) desp i t e a s i gn i f i can t i nc rease o f p ro j ec t s unde r cons t ruc t i on .

79,316

86,474

190,480

226,927

Tota l GFA (1) Bu i l t a t Work S i tesm 2

Tota l Energy (2) Used at Work S i teskWh

3,506,156

6,102,082

10,419,6589,859,522

Energy Used (2) Per Square Metre of GFA at Work S i teskWh/m 2

44

71

55

43

(1) The GFA is defined as all covered floor areas of a building, except otherwise exempted and uncovered areas for commercial uses are deemed the GFA of the building for purposes of plot ratio control and development charge. The GFA is the total area of the covered floor space measured between the centre line of party walls, including the thickness of external walls but excluding voids. GFA built per year is the product of percentage of completion (pOC) for the year and total GFA. pOC is the value of works done for the year divided by the total construction cost.

(2) The electricity data includes both direct and indirect energy.

2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008


Mainta in ing B iod ivers i ty

Rega rd less o f whe the r t he re i s any manda to r y requ i r emen t to conse r ve t r ees on s i t e, CDL makes i t a s t anda rd p rac t i ce to assess a l l ou r s i t e s du r i ng t he p l ann ing s t age to de te rm ine i f any ex i s t i ng ma tu re t r ees can be conse r ved on-s i t e o r t r ansp l an ted a t a l a t e r s t age to o r f r om ano the r CDL s i t e.

Some 10 ma tu re t r ees have been t r ansp l an ted i n fou r comp le ted p ro j ec t s i n 2008.

In jur y Rate (6) a t Work S i tes

Number o f fa ta l and non- fa ta l workp lace in ju r ies per 100,000 persons employed

Number of Compla ints on Construct ion

No ise rece i ved a t work s i tes

CDL Cons t ruc t i on I ndus t r y Ave rage (Sou rce : MOM)

CDL Number o f Comp la i n t s r ece i ved by NEA (Sou rce : NEA)

2007

2006

2008

2007 2008

(6) Injury rate refers to the number of fatal and non-fatal workplace injuries per 100,000 persons employed. Figures used are victim-based. Construction Industry Average figure for 2008 has not been published by MOM. For details, please visit www.mom.gov.sg. CDL data for 2007 is unavailable.

0

831

6,160

9,200

14,100

273

1 2

Noise

CDL i s commi t t ed to comp l y i ng w i t h t he no i se l im i t s a l l owed a t a l l ou r wo rk s i t e s and ensu re ou r con t r ac to r s t ake a l l necessa r y ac t i ons to add ress any comp la i n t s due to cons t ruc t i on no i se.

I n 2008, ou r wo rk s i t e s rece i ved two comp la i n t s r ega rd i ng cons t ruc t i on no i se. One comp la i n t was on no i se gene ra ted f rom l a te n igh t cons t ruc t i on wo rk a t one o f ou r wo rk s i t e s and ano the r comp la i n t was on t he no i s y ac t i v i t y a t n i gh t be fo re ac tua l commencemen t o f cons t ruc t i on . I n bo th cases, ou r con t r ac to r s fo l l owed up w i t h t he res iden t s, ana l y sed / i n ves t i ga ted t he comp la i n t s. I t was found tha t t he no i se l eve l s we re w i t h i n t he Max imum pe rm iss ib l e No i se Leve l s f o r Cons t ruc t i on Work and i n comp l i ance w i t h t he Regu la t i on .

Waste

E f f i c i en t cons t ruc t i on me thods, such as t he use o f p re f ab r i ca t i on and p recas t cons t ruc t i on t echno logy, a re used a t t he wo rk s i t e s to improve on-s i t e managemen t as we l l a s to reduce env i ronmen ta l impac t s and ma te r i a l was tage. CDL has adop ted p recas t des igns as an env i ronmen ta l l y f r i end l i e r a l t e r na t i ve and makes use o f r ecyc led ma te r i a l s whe reve r f eas ib l e i n t he cons t ruc t i on o f ou r deve lopmen ts.

As such , mos t o f t he cons t ruc t i on bu i l d i ng componen t s a re p recas ted o r f ab r i ca ted and tes ted o f f - s i t e, t hen t r anspo r ted to t he wo rk s i t e t o be assemb led sys tema t i ca l l y. As a resu l t , t he re i s l e ss cons t ruc t i on deb r i s, l e ss hea t , no i se and po l l u t i on gene ra ted on-s i t e.

I n 2008, CDL has gene ra ted was te o f app rox ima te l y 59.8 kg/m 2 o f GFA bu i l t . Fo r i n s t ance, a t two ma jo r commerc i a l p ro j ec t s, 7 & 9 Tamp ines G rande and 11 Tamp ines Concou rse, t he use o f a lmos t 100% p recas t cons t ruc t i on con t r i bu ted s i gn i f i can t l y t o t he reduc t i on o f t o t a l was te gene ra ted .

Construct ion Waste (4) Generated Per Square Metre of GFA at Work S i tesm 2

Accident Frequency Rate (5) a t Work S i tes

Number o f workp lace acc iden ts per mi l l i on manhours worked

CDL Cons t ruc t i on I ndus t r y Ave rage (Sou rce : MOM)2005 2006 2007 2008

2005 2006 2007 2008

Safety

I n 2008, CDL s igned a l eade rsh ip cha r t e r “p ledge fo r Ze ro – A CEO Commi tmen t Cha r te r ” , an i n i t i a t i ve by t he Workp l ace Sa fe t y and Hea l t h Counc i l and the M in i s t r y o f Manpower (MOM) . CDL i s commi t t ed to es t ab l i sh i ng a ze ro i n j u r y wo rkp l ace and w i l l con t i nue to pu t i n p l ace t he gove r nance s t r uc tu re, r esou rce a l l oca t i on , commun ica t i on and sa fe t y s t r a teg ies a t a l l ou r wo rk s i t e s.

Ove r t he yea r s, CDL’s Acc iden t F requency Ra te (AFR ) and I n j u r y Ra te has been cons i s t en t l y be low the cons t ruc t i on i ndus t r y ave rage va l ue. W i th t he s tepp ing up on sa fe t y awa reness i n i t i a t i ves a t t he wo rk s i t e s by t he con t r ac to r s, we rema in commi t t ed to upho ld i ng ou r good sa fe t y r eco rd .

(4) Construction waste is generated from construction, renovation and repair and is made up of wood, steel, concrete, gypsum, masonry, plaster, metal and asphalt.(5) Accident frequency rate refers to the number of workplace accidents per million manhours worked. Figures used are incident based. Construction Industry Average figure for 2008 has

not been published by MOM. For details, please visit www.mom.gov.sg.

52.6

49.2

65.9

59.87

3.50

0.39

3.00

1.86

3.00

0.400.52


Water

I n 2008, to t a l wa te r use i nc reased l a rge l y due to h ighe r occupancy i n ou r bu i l d i ngs. I n add i t i on , w i t h i nc reased ren ta l p ressu re, many o f ou r t enan t s have been p l ac i ng more emp loyees i n t he same l eased a rea , r esu l t i ng i n a h ighe r vo l ume o f f l u sh i ng and wa te r usage. To m i t i ga te t h i s, we have i ns t a l l ed more wa te r- sav i ng dev i ces w i t h i n ou r p rope r t i e s such as se l f - c l os i ng t aps and wa te r-e f f i c i en t f l u sh i ng c i s t e r ns. I n a l l ou r new deve lopmen ts, we w i l l make use o f wa te r-e f f i c i en t f i t t i ngs app roved unde r WELS. As fo r t he o lde r wa te r- f i t t i ngs, we have p l aced th imb les to con t ro l t he f l ow ra te to he lp save more wa te r.

We have a l so been us i ng NEWate r (10) f o r ope ra t i ons t ha t do no t r equ i r e po tab le wa te r i n ou r bu i l d i ngs such as t he sp r i nk l e r wa te r t ank and coo l i ng towe rs f rom 2007. Cu r ren t l y, f ou r CDL bu i l d i ngs a re connec ted to NEWate r supp l y. I n 2008, we have saved 84,016m 3 o f f r esh po tab le wa te r by us i ng NEWate r.

CDL Commerc ia l Bu i ld ings

NEWater used in

2008 (m 3)

Repub l ic P laza 35,033

fu j i Xerox Towers 18,091

Plaza By The Park 23,365

Pa la is Rena issance 7,527

Tota l 84,016

Water (9) Used at 11 CDL Commerc ia l Bu i ld ingsm 3/month/m 2

Water (9) Used at 5 CDL Industr ia l Bu i ld ingsm 3/month/m 2

Tota l Water (9) Used at 16 CDL Commerc ia l and Industr ia l Bu i ld ingsm 3

2005 2006 2007 2008

2005 2006 2007 2008

2005 2006 2007 2008

(9) The water data includes the total amount of water used in the buildings.(10) NEWater is treated used water that has undergone stringent purification and treatment process using advanced dual-membrane (microfiltration and reverse osmosis) and ultraviolet

technologies.

0.1420.147

0.142

0.161

437,568

467,724 463,970

478,363

0.0940.095

0.0880.089

2005 2006 2007 2008

56,915,256

57,774,51657,894,204

54,992,575

2005 2006 2007 2008

11.40111.983

10.4439.364

PROPERTY & FACIL IT IES MANAGEMENT DIV IS ION

prope r t y & Fac i l i t i e s Managemen t D i v i s i on ’s bus i ness ac t i v i t y i s t he managemen t o f CDL’s i n ves tmen t p rope r t i e s. The key env i ronmen ta l aspec t s fo r t h i s d i v i s i on a re ene rgy and wa te r. The da ta be low has been co l l ec ted f rom i nves tmen t p rope r t i e s owned and managed by us (7).

p rope r t y & Fac i l i t i e s Managemen t D i v i s i on has se t spec i f i c env i ronmen ta l ob jec t i ves and t a rge t s fo r ou r i ndus t r i a l bu i l d i ngs, p l ease re fe r t o page 56 fo r de ta i l s.

As a l and lo rd , bes ides mon i to r i ng t he consumpt ion o f wa te r and ene rgy i n ou r bu i l d i ngs ve r y c lose l y, we a l so p rov ide recyc l i ng f ac i l i t i e s fo r ou r t enan t s to encou rage respons ib l e was te managemen t .

Energy

CDL has i n t roduced va r i ous ene rgy conse r va t i on p ro j ec t s to reduce the ene rgy consumpt ion i n ou r bu i l d i ngs. Th i s i nc l udes t he use o f mo t i on senso rs to ac t i va te t he l i gh t s i n t o i l e t s, ca rpa rks and s t a i rwe l l s, t he use o f ene rgy-e f f i c i en t l i gh t i ng, r e t ro f i t t i ng h igh ene rgy a i r-cond i t i on i ng ch i l l e r s and AHU (A i r Hand l i ng Un i t ) equ ipped w i t h va r i ab l e speed d r i ves.

I n l a t e 2007, CDL’s “1ºC Up Campa ign” was a l so i n t roduced i n 11 CDL bu i l d i ngs. 90% o f ou r t enan t s suppo r ted t h i s i n i a t i t i ve to r a i se t he a i r-cond i t i on i ng t empera tu re i n t he i r o f f i ces by 1ºC.

As a resu l t , we ach ieved the 5% reduc t i on i n abso lu te ene rgy consumpt ion i n 2008 as compared to p rev ious yea r. CDL a l so ass i s t s i n mon i to r i ng t he i nd i v i dua l e l ec t r i c i t y b i l l s o f ou r t enan t s. I f t he re a re f l uc tua t i ons o f more t han 10%, the bu i l d i ng manage r w i l l du l y i n ves t i ga te t he i nc rease toge the r w i t h t he t enan t t o fo l l ow-up on the cause.

(7) The energy and water data for 2005 were collated from mid-2005. As a result, the full-year 2005 data from property & Facilities Management Division is an estimate, derived from the data available. Commerce point was sold in 2008.

(8) The energy data for the buildings includes (but is not limited to) the Mechanical and Electrical services provided in the building, e.g., lifts, air-conditioning and ventilation fans (where applicable), pumps and lighting in all common areas of the entire building. Tenants are charged individually for the use of electricity within their office.

Energy (8) Used at a l l 11 CDL Commerc ia l Bu i ld ingskWh/month/m 2

2005 2006 2007 2008

19.823 19.901

18.856 18.839

Energy (8) Used at a l l 5 CDL Industr ia l Bu i ld ingskWh/month/m 2

Tota l Energy (8) Used at a l l 16 CDL Commerc ia l and Industr ia l Bu i ld ingskWh


As we we re renova t i ng some o f ou r o f f i ces be tween 2005 and 2006, due cons ide ra t i on was g i ven to make use o f na tu ra l day l i gh t i ng i n t he des ign o f t he new o f f i ce l a you t . The enhanced day l i gh t i ng has he lped to reduce the need to sw i t ch on some o f t he o f f i ce l i gh t s i n t he day. Mo t i on senso rs have a l so been i ns t a l l ed to ac t i va te t he l i gh t s i n t he to i l e t s and o f f i ces. We a l so i n t roduced t ask l i gh t i ng i n some o f ou r o f f i ces to m in im i se t he gene ra l l i gh t i ng l eve l .

Paper

S im i l a r l y, i n 2008, CDL reduced pape r use by 11% as compared to t he p rev ious yea r a t t he co rpo ra te o f f i ce. We have f a r exceeded ou r t a rge t o f 5% reduc t i on . Eve r y emp loyee has made consc ious e f fo r t t o use l ess pape r, f o r examp le, by u t i l i s i ng e-ma i l , e - f i l i ng and pho tocopy ing /p r i n t i ng

Tota l Vo lume of Paper Used at the Corporate Of f iceNumber o f A4 reams

2005 2006 2007 2008

5,051

5,142

5,410

4,796

on bo th s i des o f t he pape r. An e-app ra i sa l s ys tem fo r emp loyees was a l so i n t roduced i n 2008 i n p l ace o f pape r documen ta t i on .

The reams o f pape r used i n ou r co rpo ra te o f f i ce a re a l so eco- f r i end l y, p re fe rence be ing fo r pape r ce r t i f i ed by t he Fo res t S tewa rdsh ip Counc i l ( FSC) . I n 2008, CDL adop ted a g reen co rpo ra te cu l t u re o f op t i ng fo r a t l eas t 50% use o f eco- f r i end l y pape r i n a l l Ma rCom pub l i ca t i ons. We have ach ieved th i s t a rge t and w i l l con t i nue to improve on ou r pe r fo rmance.

(11) The paper recycled data reported in the last report include all residential and commercial buildings. The data presented in this report includes only paper recycled from CDL commercial buildings and the residential data has been omitted for better representation.

Recycl ing

CDL has es tab l i shed a pape r recyc l i ng p rog ramme fo r ou r t enan t s i n a l l CDL bu i l d i ngs s i nce 2005. A l l new tenan t s a re p resen ted w i t h a “p ro j ec t : Eco-O f f i ce ” K i t t o p romote t he 3Rs, name l y Reuse, Reduce and Recyc le. Recyc l i ng co r ne r s a re a l so access ib l e to t enan t s to p romote and cu l t i v a te t he recyc l i ng p rac t i ce.

I n 2008, pape r recyc l i ng vo lume a t ou r bu i l d i ngs dec reased as compared to p rev ious yea r s. Th i s may be an i nd i ca t i on o f more e f f i c i en t use o f pape r i n t he o f f i ce wh ich i s a good p rac t i ce. As we a re unab le to access pape r pu rchas i ng da ta f rom ou r t enan t s, a good i nd i ca to r f o r us to eva l ua te t he e f f ec t i veness o f t h i s p rog ramme i s t o encou rage h ighe r pa r t i c i pa t i on amongs t ou r t enan t s. The pa r t i c i pa t i on r a te i n t h i s p rog ramme has i nc reased f rom 68% in 2005 to 88% (2007: 81%) i n 2008.

Tota l Vo lume of Paper Recyc led (11)

kg

2005 2006 2007 2008

365,416

402,443

417,074

384,047

CORPORATE MANAGEMENT AND OPERATIONS

At t he end o f 2008, CDL ach ieved the env i ronmen ta l ob jec t i ves and t a rge t s se t f o r ou r co rpo ra te o f f i ce i nc l ud ing resou rce conse r va t i on o f ene rgy and pape r use, po l l u t i on p reven t i on on recyc l i ng o f was te pape r and end-o f - l i f e compu te r p roduc t s, as we l l a s adop t i ng t he g reen co rpo ra te cu l t u re o f us i ng eco- f r i end l y pape r fo r Ma rCom pub l i ca t i ons and eco- f r i end l y o f f i ce equ ipmen t o r f u r n i t u re.

Energy

I n t he l a s t two yea r s, ou r e f f o r t s i n ene rgy conse r va t i on measu res have ach ieved a 10% reduc t i on . I n 2008, t he re was a s i gn i f i can t improvemen t o f more t han 5% o f ou r t a rge t , ma in l y con t r i bu ted by i ns t a l l i ng ene rgy-e f f i c i en t Nano f l ex Re f l ec to r s w i t h i n ou r o f f i ces. Th i s has he lped to reduce the use o f more l i gh t i ng t ubes.

Tota l Energy Used at the Corporate Of f icekWh

2005 2006 2007 2008

616,966

659,397

634,198

569,640


CDL CORPORaTE MaNagEMENT aND OPERaTIONS

EHS POLICY KEY POINTERS ObJECTIVES 2008 TaRgETS PERfORMaNCE IN 2008 2009 TaRgETS

“Green” Corpora teCu l ture

To use eco- f r iend ly paper in a l l MarCom pub l ica t ions

To ach ieve 50% use o f eco-f r iend ly paper fo r a l l MarCom pub l ica t ions

Ach ieved 95% use o f eco-f r iend ly paper

To ach ieve 70% use o f eco- f r iend ly paper fo r a l l MarCom pub l ica t ions by end o f 2009

To purchase/use eco-f r iend ly o f f ice furn i ture , f i t t ings and equ ipment

(a ) To re-use a t leas t 30% of o f f ice furn i ture and f i t t ings in a l l CDL newly renova ted o f f ices

(b ) To purchase eco- f r iend ly o f f ice equ ipment

Ach ieved 70% re-use o f o f f ice furn i ture and f i t t ings fo r add i t ion and a l te ra t ion works

(a ) To re-use a t leas t 50% of o f f ice furn i ture , f i t t ings and equ ipment or use susta inab le products in a l l CDL newly- renova ted o f f ices

(b ) To purchase eco- f r iend ly o f f ice equ ipment

To promote eco-consc iousness and a ‘g reen’ cu l ture among employees

New target fo r 2009 To organ ise eco-re la tedawareness events /campaigns fo r employees

ResourceConser va t ion

To reduce the use o f paper

To ach ieve 5% reduct ion in paper usage for in-house photocopy ing and pr in t ing

Ach ieved 11% reduct ion in paper consumpt ion

To ach ieve 5% reduct ion in paper usage for in-house photocopy ing and pr in t ing by end o f 2009, us ing 2008 as the base l ine

To reduce the use o f e lec t r ic i ty

To ach ieve 5% reduct ion in e lec t r ic i ty usage

Ach ieved 10% reduct ion in e lec t r ic i ty consumpt ion

(a ) To ach ieve 5% reduct ion in e lec t r ic i ty usage by end o f 2009, us ing 2008 as the base l ine (exclud ing computer room)

(b ) To moni tor power u t i l i sa t ion o f computer room

Pol lu t ion Prevent ion To d ispose waste paper respons ib ly

To moni tor co l lec t ion o f waste paper includ ing out-da ted pr in ted mater ia ls fo r recycl ing

The to ta l year ly co l lec t ion o f waste paper i s 7 ,176 kg

To moni tor co l lec t ion o f waste paper, segrega t ion o f o f f ice used paper and o ther used paper by end o f 2009

To d ispose end-of-l i fe computer re la ted products through eco-f r iend ly methods

To enro l l in to “HP P lanet Par tners and Recycl ing Programme” by September 2008

Enro l led in to “HP P lanet Par tners and Recycl ing Programme” in Apr i l 2008

To moni tor co l lec t ion o f end-of- l i fe computer re la ted products fo r recycl ing by end o f 2009

PROjECTS DIV IS ION

Object ives 2008 / 2009 Targets Per formance in 2008

E lec t r i c i t y Consumpt ion 45kWh/m 2 o f GFA Ach ieved 43kWh/m 2 o f GFA

Water Consumpt ion 2 m 3/m 2 o f GFA Ach ieved 0 .68 m 3/m 2 o f GFA

Waste Genera t ion 75kg/m 2 o f GFA Ach ieved 59.87kg/m 2 o f GFA

2008 Env i ronmenta l Per formance and 2009 Targets

PROPERTY & FACIL IT IES MANAGEMENT DIV IS ION

Object ives 2008 / 2009 Targets Per formance in 2008

Average E lec t r i c i t y Consumpt ion o f 5 CDLI ndus t r ia l Bu i ld ings

9.9 kWh/month/m 2 Ach ieved 9 .364kWh/month/m 2

Average Water Consumpt ion of 5 CDL Indus t r ia l Bu i ld ings

0.09 m 3/month/m 2 Ach ieved 0 .089 m 3/month/m 2


2005 2006 2007 2008

323

345

332298

1,834

3,1925,450

5,159

29,771 30,220 30,283 28,778

37 87 79 132

SUMMARY OF ENERGY USED AND CARBON EMISSIONS

I n 2008, ou r f ocus and e f fo r t s i n ene rgy conse r va t i on have l ed to more e f f i c i en t use o f ene rgy i n ou r bus i ness and have ach ieved a 5% reduc t i on i n to t a l ene rgy use and ca rbon em iss ions i n ou r co rpo ra te bu i l d i ngs and i nves tmen t bu i l d i ngs. The re has a l so been a s i gn i f i can t improvemen t a t ou r cons t ruc t i on s i t e s w i t h a reduc t i on o f 20% in ene rgy usage pe r squa re me te r o f GFA.

prope r t y Co rp O f f i cep ro jec t s

Fo r i n s t ance, t he ene rgy used pe r m 2 o f GFA du r i ng t he cons t ruc t i on o f p ro j ec t s deve loped by CDL has dec reased f rom 55 to 43 kWh/m 2 i n 2008. The amoun t o f ene rgy used has a l so dec reased subs tan t i a l l y i n 16 o f ou r commerc i a l and i ndus t r i a l bu i l d i ngs. The ene rgy used i n ou r co rpo ra te o f f i ce has a l so dec reased .

I n 2008, bus i ness a i r t r a ve l has a l so been i nc l uded i n t he to t a l ca rbon em iss ions da ta rep resen t i ng 0 .4% o f t o t a l ca rbon em iss ions.

(12) Energy conversion ratio: 1 kWh electricity = 0.52307 kgCO2 (2005-2007 data) and 1 kWh electricity = 0.5233 kgCO

2 (2008 data). Source: National Environment Agency.

CDL’s Tota l Energy (12) UsedkWh

2005 2006 2007 2008

616,966659,397

634,198

569,640

3,506,156

61,038,37864,535,995

68,948,060

65,421,737

31,964

33,844

36,14434,367

6,102,082

10,419,658

9,859,522

56,915,256 57,774,516 57,894,204 54,992,575

prope r t y Co rp O f f i ce Bus iness Trave lp ro j ec t s

CDL’s Tota l Carbon Emiss ions (12)

tonnesCO2

IN FOCUS:S ILT WATER TREATMENT CUM WATER RECYCL ING SYSTEM PROGRAMME AT CDL WORK S ITES

S ingapo re has no na tu ra l r esou rce wh ich makes t he p rope r managemen t o f ou r wa te r even more c r i t i ca l . Thus, CDL has made i t a p r i o r i t y t o c lose l y mon i to r and exp lo re i nnova t i ve ways to conse r ve wa te r a t ou r wo rk s i t e s. Th i s l ed to t he i n t roduc t i on o f t he S i l t Wa te r Trea tmen t cum Wate r Recyc l i ng Sys tem i n 2004.

Ou r ob jec t i ves fo r t h i s p rog ramme were to imp lemen t a sys tem tha t wou ld l ead to more e f f i c i en t use o f wa te r a t t he wo rk s i t e s, r educe the vo lume o f po tab le wa te r consumed and to p reven t wa te r po l l u t i on by manag ing t he qua l i t y o f t he wa te r d i scha rged f rom the wo rk s i t e s i n to S ingapo re ’s pub l i c wa te rways, wh i ch makes up pa r t o f S i ngapo re ’s p rec ious wa te r supp l y.

I n t h i s s ys tem, s i l t y wa te r gene ra ted a t t he wo rk s i t e s i s t r ea ted and recyc led i n to usab le wa te r f o r wash ing and gene ra l c l ean ing pu rposes to supp lemen t t he use o f po tab le wa te r. The sys tem cons i s t s o f a wa te r s to rage t ank whe re was tewa te r i s co l l ec ted , t r ea ted and s to red fo r gene ra l s i t e c l ean ing and wash ing, san i t a t i on and i r r i ga t i on . Th i s s ys tem was t he

D i ve r s i on o f s i t e s i l t wa te r / used wa te r t o

co l l ec t i ng pond

Trea tmen t o f s i l t wa te r / used wa te r

Trea ted wa te r i s kep t i n s to rage t anks fo r

r ecyc l i ng

F lush ing o f t o i l e t sGene ra l c l ean ing /

veh i c l e wash ingCons t ruc t i on

ac t i v i t i e s

Sewer

f i r s t o f i t s k i nd used a t wo rk s i t e s i n S ingapo re when i t was i n t roduced to ou r pa rc Em i l y wo rk s i t e i n 2004.

By 2007, t h i s S i l t Wa te r Trea tmen t cum Wate r Recyc l i ng Sys tem was f u r t he r improved and enhanced to i nc rease t he quan t i t y and qua l i t y o f r ecyc led wa te r. Th i s has l ed to w ide r uses o f t he recyc led wa te r wh i ch now i nc l udes p l as te r i ng and conc re t i ng, wa te r pond ing t es t s, w indow wa te r t i gh tness t es t , p ip i ng p ressu re and l eak t es t s.

Fo r i n s t ance, a t The Ocean f ron t @ Sen tosa Cove, t he wa te r consumpt ion p ro j ec ted fo r t he f i r s t twe l ve mon ths o f cons t ruc t i on was abou t 29,200 m 3. W i th t he use o f t he S i l t Wa te r Trea tmen t cum Wate r Recyc l i ng Sys tem, t he ac tua l amoun t o f po tab le wa te r used was on l y 5 ,352 m 3 o r 0 .5 m 3 pe r GFA bu i l t . Th i s r ep resen t s a subs tan t i a l r educ t i on o f more t han 80%.

To-da te, s im i l a r S i l t Wa te r Trea tmen t Cum Wate r Recyc l i ng Sys tems have been i ns t a l l ed a t a l l CDL work s i t e s.

Based on Singapore’s legislated code, the water discharged to public waterways must not exceed a TSS level of 50 mg/litre. CDL’s effective silt and earth control measures have helped to achieve a remarkable TSS of between 10 and 15mg/litre for treated water discharged into the waterways

Si l t Water Treatment & Water Recyc l ing System


A S E N S E O f P R I D E

T O

Our employees make-up the founda t ion o f the Company. CDL s t r i ves to be more than jus t a p lace o f work . We want to be an employer o f cho ice and crea te an env i ronment our employees can ca l l a second home by

empower ing , nur tur ing and va lu ing our peop le .

Invest ing in our peop le i s paramount . A f te r a l l , the i r success is as much the i rs as i t i s ours .

E M P L O Y E E P A R T I C I P A T I O N

F R O M

Age

Emp loyees a re t he backbone o f a company and rega rd l ess o f age, a l l CDL emp loyees make a s i gn i f i can t con t r i bu t i on based on the i r t a l en t , expe r t i se and expe r i ence. The ma jo r i t y o f t he CDL work fo rce, accoun t i ng fo r 60 .9%, a re be tween the ages o f 31 and 50, unchanged f rom 2007. I n t he cu r ren t f i nanc i a l t u rmo i l , we can t ap on t he know ledge and expe r i ence o f o lde r emp loyees who have gone th rough p rev ious t umu l t uous bus i ness cyc l es to he lp o f f e r gu idance to wea the r ou t t h i s cha l l eng ing economic env i ronmen t . S im i l a r l y, we have been encou rag ing younge r emp loyees to b r i ng fo r t h f r esh and i nnova t i ve i deas to i n v i gou ra te t he bus i ness and to con t ro l cos t .

I n sp i t e o f t he i nc reas i ng l y cha l l eng ing l abou r s i t ua t i on , CDL has con t i nued to ex tend emp loymen t to emp loyees who have pas t t he re t i r emen t age o f 62 unde r t he S ingapo re Re t i r emen t Age Ac t . So l ong as t hey a re pe r fo rm ing up to expec ta t i ons and a re ce r t i f i ed med ica l l y f i t , t hey w i l l be ab le to con t i nue t he i r emp loymen t on a yea r l y con t r ac t . 2 .6% o f ou r emp loyees a re ove r t he age o f 62 .

Even though the Ac t a l so p rov ides S ingapo re emp loye r s w i t h t he d i sc re t i on to reduce the i r wages by up to 10% when ex tend ing emp loymen t beyond 60 to he lp ease t he cos t bu rden , we va l ue t he con t r i bu t i ons o f ou r o lde r emp loyees and con t i nue to ex tend fu l l r emune ra t i on to t hem when they a t t a i n 60 yea r s o ld .

Educat ion

We have been fo r t una te to emp loy and re t a i n a v i b ran t , mo t i va ted and qua l i f i ed wo rk fo rce wh ich has been c r i t i ca l i n p rov id i ng CDL w i t h a compe t i t i ve advan tage. The vas t ma jo r i t y o r abou t 72% o f ou r emp loyees ho ld t e r t i a r y qua l i f i ca t i ons and above ( t h i s i nc l udes ho lde r s o f d ip loma, deg ree and Mas te r s qua l i f i ca t i ons ) .

OVERVIEW OF CDL’S EMPLOYMENT POLICY AND PRACTICES

At CDL, we s t r i ve to c rea te a wo rkp l ace o f cho i ce fo r ou r emp loyees.

W i th a wo rk fo rce o f ove r 300 emp loyees i n S ingapo re, we be l i e ve i n t he p rac t i ce o f f a i r emp loymen t and have s i gned the Emp loye r s p ledge fo r Fa i r Emp loymen t p rac t i ces w i t h The Tr i pa r t i t e A l l i ance fo r Fa i r Emp loymen t p rac t i ces (TAFEp ) (1 ) i n 2008 i n add i t i on to upho ld i ng t he Un i t ed Na t i ons (UN) G loba l Compac t p r i nc ip l es on human r i gh t s and l abou r.

Recogn i s i ng t ha t ou r emp loyees make up the f ab r i c t ha t s t r eng thens ou r Company, CDL has pu t i n p l ace Key pe r fo rmance I nd i ca to r s (Kp I s ) t ha t w i l l he lp us deve lop a t a l en ted , mo t i va ted , happy and hea l t hy wo rk fo rce. These Kp I s i nc l ude improv i ng t he compe tenc ies o f ou r emp loyees by i nco rpo ra t i ng comprehens i ve p rog rammes and po l i c i es to cu l t i v a te and deve lop t he po ten t i a l and we l l -be ing o f ou r mos t va l uab le asse t .

We a l so a im to c rea te a conduc i ve wo rk env i ronmen t t ha t suppo r t s a co rpo ra te cu l t u re o f wo rk- l i f e ha rmony and to improve t he hea l t h o f ou r emp loyees w i t h t a rge t s such as ach iev i ng an annua l t u r nove r r a te o f l e ss

t han 20% and fou r days o r l e ss o f med ica l l eave t aken pe r emp loyee pe r yea r. Bo th t hese t a rge t s have been ach ieved i n 2008. Ou r goa l i s t o a l so be an i ndus t r y l eade r i n wo rkp l ace hea l t h and work- l i f e i n i t i a t i ves. I n t h i s r ega rd , we have made pos i t i ve headway and have been w inn ing key na t i ona l and reg iona l awa rds i n t h i s a rea .

BUILDING ON A FAIR WORKPLACE – POLICY OF NON-DISCRIMINATION

I n acco rdance w i t h CDL’s po l i c y on non-d i sc r im ina t i on and f a i r ness, we adhe re to s t r i c t gu ide l i nes i n t he rec ru i tmen t p rocess when new emp loyees a re needed . Rec ru i tmen t adve r t i semen ts p l aced i n t he newspape rs and rec ru i t i ng webs i t es do no t have gende r, e thn i c and age p re fe rences. I n 2008, t he re we re no repo r t s o f i nc idence o f d i sc r im ina t i on by ou r emp loyees.

CDL t akes p r i de i n hav i ng unde r ou r f o l d a d i ve r se and we l l - r ep resen ted work fo rce wh ich we d raw on , cap i t a l i s i ng on t he i r s t r eng ths wh i l e nu r t u r i ng t he i r immense po ten t i a l . Ou r success i s no t a t t r i bu ted to any one i nd i v i dua l bu t t o t he ca re fu l deve lopmen t o f a compe ten t and cohes i ve wo rk fo rce.

Gender

CDL be l i e ves i n equa l oppo r tun i t y. The re fo re, i t i s imma te r i a l t ha t ou r wo rk fo rce i s p redominan t l y f ema le as ou r h i r i ng po l i c y i s based on mer i t . Fema le emp loyees a re a l so rep resen ted a t t he sen io r managemen t i n t he Company and cu r ren t l y, 12 o f t he 21 Heads o f Depa r tmen t s a re l ed by f ema les.

(1) The Tripartite Alliance for Fair Employment practices (TAFEp) was formed in May 2006 to promote non-discriminatory employment practices and to shift mindsets among employers, employees and the general public towards fair employment practices for all workers. Members include employer representatives, union leaders and government officials.

Chap te r 5

E M P O W E R I N G O U R P E O P L E


Age Group Prof i le

26.4% 41-50 YEARS

2.6% ABOVE 62 YEARS

14.8% 51-61 YEARS

34.5% 31-40 YEARS

21.7% 18-30 YEARS

Educat ional Prof i le

7% MASTERS DEGREE

5% SEC SCHOOL/NTC-3

1% GCE ‘N’ LEVEL

12% GCE ‘O’ LEVEL

2% GCE ‘A’ LEVEL

23% DIPLOMA / ADVANCED DIPLOMA

2% PSLE & BELOW

6% OTHERS

42% DEGREE

Gender Prof i le o f Heads of Department

43% MALE

57% FEMALE

mind i nc l ude the re l evance o f f u r t he r t r a i n i ng dependen t on t he needs o f t he j ob and pe rsona l i n t e res t o f t he emp loyees.

Recogn i s i ng t he impor t ance o f t he Wh i s t l e B low ing po l i c y, t r a i n i ng was organised company-wide for a l l employees progress ive ly f rom 2007 to 2008.

Youth Development

CDL has va r i ous p l a t f o rms to p rov ide emp loymen t oppo r tun i t i e s as pa r t o f ou r con t i nued CSR commi tmen t t owa rds you th deve lopmen t . To rec ru i t you th w i t h po ten t i a l , CDL o f f e r s scho l a r sh ips to s tuden t s w i t h good academic resu l t s. These s tuden t s w i l l be bonded to t he Company fo r t h ree yea r s and a re g i ven oppo r tun i t y t o g row and t ake on ro l es appo r t i on to t he i r po ten t i a l . We a l so suppo r t va r i ous s tuden t ’s i ndus t r i a l a t t achmen t p rog rammes f rom the po l y t echn i cs and un i ve r s i t i e s. These s tuden t s a re a t t ached to d i f f e ren t depa r tmen t s based on the i r f i e l d o f s t ud ies ove r a pe r i od o f seven to 24 weeks.

I n pa r t ne r sh ip w i t h As i a Women ’s We l f a re Assoc i a t i on (AWWA) , a vo lun ta r y we l f a re o rgan i sa t i on t ha t ca te r s to young peop le w i t h spec i a l needs, we pa r t i c i pa ted as a co rpo ra te pa r t ne r unde r t he i r Teach Me (TM) I nc p rog ramme tha t o f f e r s phys i ca l l y cha l l enged you th t he oppo r tun i t y t o be coached i n CDL, t he reby he lp i ng t hem to be i ndependen t i n t he l ong run . Two you ths have s i nce come on boa rd CDL on an i n te r nsh ip ass ignmen t fo r a pe r i od o f s i x mon ths and one o f t hem who showed g rea t po ten t i a l was subsequen t l y o f f e red a pe rmanen t pos i t i on i n March 2009.

The Employment Act

CDL emp loyees a re e l i g i b l e fo r bene f i t s i n acco rdance w i t h t he Emp loymen t Ac t i n S ingapo re. The Emp loymen t Ac t i s t he p r ima r y s t a tu te gove r n i ng i nd i v i dua l emp loymen t re l a t i ons i n S ingapo re, bu t t he re i s a body o f o the r l aws i nc l ud ing t he Re t i r emen t Age Ac t and Ch i l d ren Deve lopmen t Co-Sav ings Ac t t ha t gove r n gene ra l emp loymen t s t anda rds. Even though the Emp loymen t Ac t does no t cove r manage r i a l , execu t i ve o r con f i den t i a l emp loyees, CDL ex tends to t hem s im i l a r o r be t t e r bene f i t s.

On 1 Janua r y 2009, t he Emp loymen t Ac t was rev i sed bu t t he impac t i s m ino r as CDL has a l r eady ex tended to emp loyees t he same o r even be t t e r

bene f i t s. Fo r examp le, CDL ex tends pa id pub l i c Ho l i days and pa id s i ck l eave to a l l emp loyees f rom the day t he emp loyee j o i ns wh ich i s no t necessa r y unde r t he p rev ious Emp loymen t Ac t , wh i ch requ i r es t ha t compan ies p rov ide such bene f i t s on l y t o t hose cove red unde r t he Emp loymen t Ac t .

CPF Scheme and Ret i rement

The Cen t r a l p rov iden t Fund (CpF ) i s a comprehens i ve soc i a l secu r i t y sav i ngs p l an t ha t has p rov ided many wo rk i ng S ingapo reans w i t h a sense o f secu r i t y and con f i dence i n t he i r o ld age. CDL he lps emp loyees make mon th l y con t r i bu t i ons wh ich a re deduc t i b l e f rom the i r mon th l y g ross sa l a r y i n to t he i r CpF accoun t s as requ i r ed by l aw. CpF con t r i bu t i on i s a pe rcen tage o f t he mon th l y sa l a r y and va r i es acco rd ing to t he emp loyee ’s age. These sav i ngs ea r n a m in imum r i sk - f r ee i n te res t o f 2 .5% gua ran teed by t he Gove r nmen t . I n 2008 and 2009, po r t i ons o f t he sav i ngs w i l l ea r n a gua ran teed m in imum 4% in te res t .

The ove ra l l scope and bene f i t s o f t he CpF encompass t he fo l l ow ing : i ) Re t i r emen t • P l an to ensu re su f f i c i en t sav i ngs to see CPF members t h rough r e t i r emen t i i ) Hea l t hca re • P l an to ensu re su f f i c i en t sav i ngs to mee t members ’ med ica l needs i n o ld agei i i ) Home Ownersh ip • P l an to ensu re a p rope r t y t ha t i s f u l l y pa id -up when members r e t i r e i v ) Fam i l y p ro tec t i on • Seve ra l schemes and i nsu rance p l ans such as Dependan t s ’ p ro tec t i on Scheme, Home p ro tec t i on Scheme, ca tas t roph i c med ica l i n su rance scheme and even seve re d i sab i l i t y i n su rance scheme to p ro tec t t he CpF members and the i r f am i l i e s. v ) Asse t Enhancemen t • CPF members have t he cho i ce to dec ide fo r t hemse l ves how to i n ves t t he i r CpF sav i ngs, and wha t r i s ks to accep t , t o ensu re t he i r f i nanc i a l we l l -be ing a f t e r r e t i r emen t .

ATTRACTING AND RETAINING A HAPPY WORKFORCE – REMUNERATION, BENEFITS AND PRO-EMPLOYEE PROGRAMMES

At CDL, we seek to engage qua l i t y emp loyees who a re mo t i va ted , t a l en ted and capab le w i t h t he po ten t i a l t o he lp t ake t he bus i ness to t he nex t l e ve l . As one o f S ingapo re ’s l a rges t compan ies by marke t cap i t a l i s a t i on , l eade r i n t he p rope r t y i ndus t r y and rec ip i en t o f mu l t i p l e bus i ness and commun i t y r e l a t ed awa rds, CDL i s we l l es t ab l i shed i n S ingapo re as a company w i t h p roven f i nanc i a l and soc i a l pe r fo rmance ove r t he l a s t 45 yea r s. As a resu l t , t h i s makes CDL a we l l - sough t a f t e r company i n t he emp loymen t marke t .

C rea t i ng a f a i r wo rkp l ace, emp loyees a re o f f e red a mu tua l l y -ag reed upon remune ra t i on package based on the respons ib i l i t i e s t ha t t hey a re expec ted to unde r t ake w i t h i n t he o rgan i sa t i on as we l l a s t he i r p r i o r expe r i ence. The ove ra l l package i s pe r fo rmance-d r i ven and i s no t based on sen io r i t y. To f u r t he r encou rage and rewa rd emp loyees fo r a j ob we l l done, t hey a re awa rded bonuses o f d i f f e ren t quan tum acco rd ing to t he i r pe r fo rmances r a ted by t he i r Heads o f Depa r tmen t s du r i ng an annua l pe r fo rmance app ra i sa l . Beyond the pe r fo rmance rev i ew, i s sues such as sk i l l enhancemen t and ca ree r deve lopmen t a re a l so add ressed . These quan ta a re mode ra ted and endo rsed by Sen io r Managemen t w i t h i npu t f r om Human Resou rce (HR) Depa r tmen t .

Tra in ing

CDL a l so has i n p l ace s t r a teg ies to f u r t he r cu l t i v a te t he t a l en t s o f ou r i n va l uab le emp loyees. We v i ew i t a s an i nd i spensab le i n ves tmen t f o r t he i r pe r sona l deve lopmen t and con t r i bu t i on towa rds t he success o f t he Company. Lea r n i ng and t r a i n i ng p rog rammes a l so a id i n i nc reas i ng emp loyee sa t i s f ac t i on and encou rage re ten t i on .

CDL’s HR po l i c i es p rov ide emp loyees w i t h t he oppo r tun i t i e s fo r p ro fess iona l deve lopmen t and sk i l l imp rovemen t t h rough sponso rsh ip o f f u l l - t ime t r a i n i ng cou rses and pa r t - t ime ce r t i f i ca t i on p rog rammes. Annua l t r a i n i ng needs ana l y s i s i s a l so he ld to i den t i f y t he t r a i n i ng needs o f emp loyees. When l ook ing a t deve lopmen t o f emp loyees, CDL focuses on bo th t he t echn i ca l and spec i f i c sk i l l se t s t he emp loyees w i l l need to do the i r jobs.

I n 2008, a to t a l o f 1 ,075 hou rs (2007: 1 ,193 hou rs ) had been ded ica ted to CSR and env i ronmen ta l - re l a t ed t r a i n i ng. Th i s i nc l udes pa r t i c i pa t i on i n t he CSR Con fe rence 2008, G reen So lu t i ons fo r a Sus ta i nab le Env i ronmen t , Jo in t ACCA Sus ta i nab i l i t y Con fe rence & Award 2008, Leade rsh ip i n G reen Bu i l d i ng, S ingapo re Compac t : Eva l ua t i ng & Measu r i ng CSR E f f ec t i veness, Sus ta i nab i l i t y : Avo id i ng t he G reen p rem ium, Sus ta i nab le Ene rgy Deve lopmen t , Towa rds a G reen , Sa fe and Fr i end l y Bu i l t Env i ronmen t , Workp l ace Sa fe t y & Hea l t h Ac t and R i sk Managemen t , e t c. As ou r wo rk fo rce i nc reas i ng l y r ece i ves more t r a i n i ng i n t h i s a rea ( coup led w i t h a re l a t i ve l y l ow emp loyee tu r nove r r a te ) , i t becomes more cha l l eng ing to ma in t a i n o r i nc rease t he number o f t r a i n i ng hou rs due to t he l im i t ed ava i l ab i l i t y o f t r a i n i ng a t more advanced l eve l s. Fu r t he rmore, o the r f ac to r s to bea r i n

Fo r 2008, we a re happy to repo r t t ha t t he annua l emp loyee tu r nove r a t 17 .1% i s l owe r t han t he na t i ona l annua l ave rage o f 23 .7%. The ave rage l eng th o f se r v i ce o f each emp loyee a t 8 .1 yea r s (2007: 8 .3 yea r s ) i s an i nd i ca t i on o f ou r emp loyee ’s commi tmen t and l oya l t y t o t he Company. Fu r t he rmore, 50% o f ou r emp loyees have been w i t h t he Company fo r more t han f i ve yea r s, ano the r i nd i ca to r o f emp loyee sa t i s f ac t i on .

I n November 2008, we conduc ted ou r f i r s t on l i ne Emp loyee Su r vey to seek emp loyees ’ f eedback on how they f ee l abou t wo rk i ng w i t h CDL and how the Company can con t i nue to improve ou r wo rkp l ace and bus i ness pe r fo rmance. We a re happy to repo r t an ave rage sa t i s f ac to r y r a te above and beyond ou r t a rge t o f 90% fo r a l l t he su r vey ca tego r i es.

CDL Na t i ona l Ave rage

Employee Turnover

25

%

20

15

10

5

02006 2007 2008

15.48

23.4

16.8

24

17.1

23.7


f r i end l y and hea l t h - re l a ted p rog rammes. I n 2008, we p romoted the “Heal thy Mind, Happy L i fe” programme. For deta i ls, p lease refer to page 69.

We a l so pa r t ne red w i t h a f i t ness cen t re to o f f e r a t t r ac t i ve co rpo ra te membersh ip r a tes to emp loyees and the i r f am i l y members. Emp loyees a re a l so g i ven f r ee annua l bas i c hea l t h sc reen ing wh ich i s conduc ted du r i ng wo rk i ng hou rs to p romote to t a l we l l ness. Fam i l y members a re a l so encou raged to pa r t i c i pa te i n t he hea l t h sc reen ing p rog ramme a t a d i scoun ted p r i ce.

Beyond the bas i c ob l i ga t i on fo r s i ck l eave unde r t he requ i r emen ts o f t he Emp loymen t Ac t , CDL has i nco rpo ra ted a p ro long I l l ness Scheme ava i l ab l e to emp loyees who f a l l c r i t i ca l l y i l l . Unde r t h i s scheme, c r i t i ca l l y i l l emp loyees have t he op t i on to recupe ra te a t home fo r 18 mon ths. They w i l l con t i nue to d raw a f u l l mon th l y sa l a r y du r i ng t he f i r s t s i x mon ths, ha l f t he mon th l y sa l a r y fo r t he nex t s i x mon ths and no sa l a r y ex tended bu t s t i l l be emp loyed fo r t he l a s t s i x mon ths.

CDL has a l so p rog ressed f rom a Go ld S ingapo re H .E .A .L .T.H . (He lp i ng Emp loyees Ach ieve L i f e -T ime Hea l t h ) Awa rd w inne r s i nce 2005 to a p l a t i num Award w inne r fo r t he f i r s t t ime 2008, t he h ighes t honou r g i ven

to an emp loye r based on the mer i t s o f t he p rog ramme imp lemen ted . Th i s awa rd re i n fo rces ou r co rpo ra te ph i l osophy as a ca r i ng and respons ib l e emp loye r t ha t i s conce r ned fo r t he we l l -be ing o f ou r emp loyees.

A t t he co rpo ra te o f f i ce, we have had ze ro i n j u r y r a te and occupa t i ona l d i seases f rom 2006 to 2008. The re have a l so been no l os t days due to wo rk- re l a ted f a t a l i t i e s. The ave rage med ica l l eave t aken pe r emp loyee per year has rema ined cons tan t l y a t four days or less f rom 2006 to 2008.

i i i ) Employee Engagement

CDL encou rages open commun ica t i on and pos i t i ve emp loyee bond ing to c rea te a happy wo rk- l i f e t ha t boos t s p roduc t i v i t y. New emp loyees unde rgo an o r i en ta t i on p rog ramme tha t he lps t hem to se t t l e i n comfo r t ab l y i n t he i r new work env i ronmen t and to be e f f ec t i ve i n t he i r new ro l e and respons ib i l i t i e s. The p rog ramme i nc l udes o r i en ta t i ng new emp loyees to ou r “G reen” cu l t u re and ISO 14001 awa reness.

New emp loyees w i l l a l so have t he oppo r tun i t y t o mee t ou r Manag ing

Pro-Baby Legis la t ion

Mak ing CDL a more conduc i ve p l ace fo r f am i l i e s, CDL has adop ted measu res i n l i ne w i t h t he Gove r nmen t ’s p ro-baby l eg i s l a t i ons wh ich we re passed and made e f f ec t i ve f rom 31 Oc tobe r 2008. The rev i s i ons we re made to enhance p ro-baby bene f i t s such as ex tended ma te r n i t y l eave, ch i l dca re and i n f an t ca re l eave.

Fo r i n s t ance, pa id ma te r n i t y l eave has been ex tended f rom 12 weeks to 16 weeks fo r mo the r s w i t h S ingapo re C i t i zen b i r t hs. Emp loyees w i t h S ingapo re C i t i zen ch i l d ren w i l l be en t i t l ed to s i x days o f pa id ch i l dca re l eave pe r yea r (p rev ious l y two days pe r yea r ) i f t hey have a t l eas t one ch i l d unde r t he age o f seven yea r s. Emp loyees w i t h S ingapo re C i t i zen ch i l d ren may app l y fo r up to s i x days o f unpa id i n f an t ca re l eave pe r yea r t o ca re fo r t he i r ch i l d o f two yea r s o r be low o f age. (2 )

Dynamic Pro-Employee Programmes

CDL be l i e ves i n deve lop ing emp loyee engagemen t s t r a teg ies to d r i ve t he message o f connec t i v i t y and commi tmen t i n to t he hea r t s and m inds o f emp loyees. These s t r a teg ies a re ca tego r i sed i n to t h ree d imens ions, ma in l y, i ) wo rk- l i f e ha rmony/p ro- f am i l y cu l t u re, i i ) wo rkp l ace hea l t h and i i i ) emp loyee engagemen t .

i ) Work-L i fe Harmony/Pro-Fami ly Cul ture

Work- l i f e s t r a tegy i s impor t an t t o CDL as we recogn i se t he bus i ness bene f i t s o f he lp i ng emp loyee s t r i ke a good ba l ance be tween work and pe rsona l commi tmen t s. Th i s a l so he lps to suppo r t t he chang ing needs and demands o f t he new gene ra t i on who v i ew work f l e x i b i l i t y as an impor t an t f ac to r i n f l uenc ing t he i r cho i ce o f emp loye r.

Ou r emp loyees en joy a w ide r ange o f bene f i t s and p rog rammes tha t a i d i n enhanc ing wo rk- l i f e ha rmony. We a re open to f l e x i -wo rk a r r angemen ts fo r emp loyees, t hus a l l ow ing t hem to manage the i r t ime more e f f ec t i ve l y. Op t i ons i nc l ude f l e x i s t a r t -and-end work hou rs whe re emp loyees may choose the i r wo rk i ng hou rs w i t h i n managemen t -se t l im i t s, f l e x i b l e wo rk a r r angemen ts and to sw i t ch to a pe rmanen t pa r t - t ime work a r r angemen t fo r

emp loyees w i t h excep t i ona l f am i l y commi tmen t s. Ove r 30% o f emp loyees have op ted fo r t h i s f l e x i s t a r t -and-end work hou rs a r r angemen t and two emp loyees have sw i t ched f rom pe rmanen t f u l l - t ime to pa r t - t ime work a r r angemen t . May and June 2008 were a l so des igna ted as CDL Fam i l y Mon th and a se r i es o f f am i l y - l i f e ac t i v i t i e s we re a r r anged to p romote a ba l anced work- l i f e cu l t u re i n CDL.

CDL has success fu l l y a t t a i ned the Work-L i f e Exce l l ence Award 2008 con fe r red by The Tr i pa r t i t e Commi t t ee on wo rk- l i f e s t r a tegy t ha t compr i ses more t han 10 member o rgan i sa t i ons f rom the gove r nmen t , un ions, emp loye r, emp loyee and bus i ness assoc i a t i on rep resen ta t i ves. Rece i v i ng t h i s awa rd a f f i rmed ou r e f f o r t s t o c rea te a pos i t i ve wo rk-l i f e ha rmony env i ronmen t t ha t p l aces g rea t va l ue on max im i s i ng ou r emp loyee pe r fo rmance.

i i ) Workplace Heal th

CDL has a ded i ca ted wo rk- l i f e commi t t ee, wh i ch compr i ses s t a f f r ep resen ta t i ves ac ross a l l depa r tmen t s. They p l an and execu te f am i l y -

(2) The benefits are subject to eligibility.

By working hard and playing hard together, CDL employees have cultivated a strong bond with the Company and camaraderie with their colleagues.

CDL employees, together with their families, enjoy a rustic time at an outing to Pulau ubin, just one of the many activities organised by CDL to promote Work-Life Harmony.


IN FOCUS:HEALTHY MIND, HAPPY L IFE !

At CDL, t he HR Depa r tmen t o rgan i ses a comprehens i ve r ange o f we l f a re p rog rammes fo r emp loyees. Howeve r, each yea r, t he depa r tmen t s t r eam l i nes i t s s t r a tegy to focus on one spec i f i c t heme wh ich i t be l i e ves i s pe r t i nen t t o t he ove ra l l we l l -be ing o f t he emp loyees.

The Workp l ace Hea l t h p romot ion & Work-L i f e Exce l l ence p rog ramme fo r 2008 focused on “Hea l t hy M ind , Happy L i f e ! ” t o p romote pos i t i ve men ta l hea l t h by r a i s i ng awa reness o f t he impor t ance o f men ta l we l l -be ing and enhanc ing one ’s se l f es teem and res i l i ence t h rough a ca re fu l l y p l anned ca lenda r o f ac t i v i t i e s i nc l ud ing l unch- t ime t a l k s, men ta l we l l ness campa igns, o f f i ce s t r e t ch i ng exe rc i ses, mon th l y f r u i t / snack d i s t r i bu t i ons and week l y exe rc i se c l asses.

Some key h igh l i gh t s o f t he campa ign i nc l ude the Emp loyee Ass i s t ance p rog ramme (EAp ) wh ich p rov ides con f i den t i a l counse l l i ng ass i s t ance to emp loyees i n t he fo rm o f t e l ephon ic, f ace- to - f ace o r e -ma i l consu l t a t i ons by acc red i t ed p ro fess iona l counse l l o r s i n t he a reas o f wo rk , i n t e rpe r sona l r e l a t i ons, ma r r i age and f am i l y. To p romote t he se r v i ce, a s t r ess -ba l l i n t he fo rm o f a cu te l i t t l e pengu in w i t h t he con tac t de ta i l s o f t he EAp was d i s sem ina ted to a l l emp loyees.

To re i n fo rce and rem ind emp loyees on t he impor t ance o f be ing happy and to keep sm i l i ng, a “Bes t Sm i l e Con tes t ” was he ld . Snap sho t s o f emp loyees, p roud l y d i sp l ay i ng a too thy g r i n , we re t aken and f i ve chee r fu l w inne rs we re announced i n May 2008.

I n Ju l y, a “Tree o f Thanks” was c rea ted to p rov ide an i n te rac t i ve and c rea t i ve p l a t f o rm fo r emp loyees to w r i t e a no te o f t hanks to show the i r app rec i a t i on fo r t he i r f e l l ow co l l eagues. Th i s exe rc i se gene ra ted qu i t e a buzz i n t he o f f i ce and the Tree was f i l l ed w i t h some 260 thank you no tes !

Emp loyees have been ve r y suppo r t i ve o f t hese ac t i v i t i e s. Fo r i n s t ance, l unch- t ime t a l k s see an ave rage pa r t i c i pa t i on o f 27 .5% o f emp loyees.

D i r ec to r and sen io r managemen t whe re t hey may sha re t he i r op in ions f r ee l y o r ask any wo rk- re l a ted ques t i ons. Th i s he lps new emp loyees be t t e r unde rs t and the Company ’s v i s i on , m i ss ion and co rpo ra te cu l t u re.

When the re a re changes i n HR po l i c i es, b r i e f i ngs a re o rgan i sed fo r emp loyees to unde rs t and the new o r r ev i sed p rocedu res i n de ta i l and to he lp add ress any emp loyee ’s que r i es o r doub t s. Emp loyees can a l so re fe r t o t he CDL Emp loyee Handbook on CDLNET, an i n t r ane t po r t a l , wh i ch de ta i l s t he Company ’s t e rms and cond i t i ons o f emp loymen t , bene f i t s, HR po l i c i es and p rac t i ces i nc l ud ing t he Wh i s t l e -B low ing po l i c y and the Code o f Bus iness and E th i ca l Conduc t . A new p l a t f o rm, t i t l ed “CDL I ns igh t Fo rum” , i n i t i a t ed i n Sep tember 2008, p rov ides a mon th l y oppo r tun i t y f o r one depa r tmen t t o p resen t t he i r ope ra t i on ’s goa l s and p rocedu res. Th i s he lps to fos te r be t t e r unde rs t and ing o f t he i nne r wo rk i ngs o f t he Company, enhance i n t r a -depa r tmen t cohes i veness, i n sp i r e and exchange i deas amongs t emp loyees.

I n t he even t t ha t an emp loyee has any g r i evance to repo r t , t he re a re sys tems i n p l ace to ensu re t ha t he /she may make the comp la i n t s w i t h con f i den t i a l i t y. The p rocess i s s t r a i gh t fo rwa rd . An emp loyee w i t h a g r i evance may d i scuss i t w i t h h i s immed ia te supe r v i so r /manage r o f t he un i t . I f t he g r i evance i s no t r eso l ved , t he emp loyee may d i scuss t he ma t te r w i t h t he Head o f D i v i s i on / Depa r tmen t o r Head o f HR who w i l l g i ve a rep l y o r exp l ana t i on . I f t he emp loyee s t i l l f ee l s t ha t t he g r i evance

i s no t p rope r l y add ressed , i t w i l l be dea l t w i t h by t he Sen io r Managemen t compr i s i ng t he G roup Gene ra l Manage r and the Head o f t he Depa r tmen t whe re t he emp loyee be longs, t oge the r w i t h t he Head o f HR to ensu re t he ma t te r i s hea rd i n a f a i r and impa r t i a l manne r.

We be l i e ve t ha t ou t s i de o f wo rk , t he re shou ld be soc i a l ac t i v i t i e s to p rov ide added oppo r tun i t i e s fo r emp loyees to i n t e rac t and fos te r an engaged work fo rce. Thus, a w ide a r r ay o f soc i a l ac t i v i t i e s a re o rgan i sed by va r i ous commi t t ees, f o rmed by emp loyees t ha t cu t ac ross t he va r i ous depa r tmen t s. They i nc l ude the Work-L i f e Commi t t ee wh ich o rgan i ses wo rkp l ace hea l t h re l a t ed ac t i v i t i e s, t he C-Base Commi t t ee wh ich he lps to p romote i n te rac t i on and bond ing among emp loyees who sha re common i n te res t a t t he emp loyee l ounge and the S ta f f Connec t Commi t t ee wh ich a ims to bu i l d a c lose l y -kn i t t ed wo rk fo rce w i t h i n CDL and fos te r a sense o f be long ing and camarade r i e among a l l emp loyees t h rough work i ng, p l ay i ng and g row ing toge the r. Ano the r bond ing oppo r tun i t y i s t h rough the pa r t i c i pa t i ng o f ac t i v i t i e s unde r ou r C i t y Sunsh ine C lub, an emp loyee vo lun tee r s c l ub, wh i ch p rov ides t he oppo r tun i t y f o r emp loyees to vo lun tee r t he i r t ime and t a l en t i n t he Company ’s commun i t y e f f o r t s.

As CDL be l i e ves t ha t connec ted emp loyees pe r fo rm be t t e r, we w i l l con t i nue to seek i nnova t i ve ways to o rgan i se p rog rammes tha t r e i n fo rces emp loyee ’s sense o f f ee l i ng va l ued and i nvo l ved , nu r t u r i ng t he t eam sp i r i t and a be long ing to t h i s CDL f am i l y.

A myriad of welfare programmes including belly-dancing sessions have proven to be well appreciated and attended by CDL employees.

The “Tree of Thanks” with some 260 thank you notes of appreciation.

Throughout the year, CDL employees have many opportunities to get together for some merry making to foster goodwill and bonding, especially during the festive seasons like Christmas and Lunar New Year.


E N R I C H I N G T H E C O M M u N I T Y

At CDL, we v iew our ro le in our soc ie ty as a deve loper o f l i ves and communi t ies . Our CSR ph i losophy s tems f rom a s t rong t rad i t ion o f g iv ing back to the soc ie ty which has resu l ted in the deve lopment o f ex tens ive susta inab le out reach programmes and a dynamic vo lunteer p la t fo rm which he lps us to ex tend hope,

enr ich and empower the l i ves o f those we touch.

We are mindfu l tha t to c rea te a bet ter tomorrow, respect fo r the communi ty and env i ronment i s p ivo ta l .

T O

C O M M u N I T Y O u T R E A C H

F R O M

CDL volunteers step up to the Special Olympics Challenge at the National Vertical Marathon held at Republic Plaza, CDL’s flagship commercial building.

During the Lunar New Year, CDL volunteers brought festive joy to the residents from Henderson Senior Citizens’ Home at a luncheon held at Grand Shanghai restaurant.

Car ing for the Less Pr iv i leged

S ingapo re may be one o f t he mos t mode rn and a f f l uen t coun t r i e s i n As i a , bu t t he re a re s t i l l many i n ou r m ids t t ha t need a he lp i ng hand . Suppo r t i ng t he l ess p r i v i l eged encompasses ass i s t ance to t he e lde r l y, s i ck , i n t e l l ec tua l l y cha l l enged and those d i sadvan taged by soc i a l c i r cums tances.

Fo r t h ree consecu t i ve yea r s f rom 2007 to 2009, CDL emp loyees toge the r w i t h t he i r f am i l i e s, s t epped up to l end a hand i n t he Spec i a l O l ymp ics Cha l l enge a t t he Na t i ona l Ve r t i ca l Ma ra thon o rgan i sed by Nanyang Techno log i ca l Un i ve r s i t y Spo r t s C lub he ld a t Repub l i c p l a za . I n Feb rua r y 2008, ove r 40 emp loyee vo lun tee r s p l ayed budd ies to 36 Spec i a l O l ymp ians i n comp le t i ng t he 60-s to rey re l ay r ace to t he top o f t he bu i l d i ng. I n add i t i on to sponso r i ng t he venue, CDL a l so sponso red the CDL Co rpo ra te Cha l l enge ca tego r y to encou rage ou r o f f i ce t enan t s, pa r t ne r s and bus i ness assoc i a tes to adop t a hea l t hy l i f e s t y l e by pa r t i c i pa t i ng i n t he ve r t i ca l ma ra thon .

B r i ng ing some fes t i ve chee r to t he e lde r l y, CSC vo lun tee r s b rough t some 60 res iden t s f rom Hende rson Sen io r C i t i zens ’ Home to a sumptuous l unch a t CDL’s G rand Shangha i r es t au ran t t o ce leb ra te Luna r New Yea r.

The res iden t s en joyed themse l ves immense l y, many s i ng ing and danc ing to eve rg reen tunes by t he l i ve band . End ing t he day on a h igh no te, t he res iden t s we re a l so p resen ted w i t h hongbaos dona ted by Hong Leong Founda t i on .

CDL emp loyees t u r ned up i n f u l l f o rce to suppo r t t he Ass i s i Hosp i ce Cha r i t y Fun Day 2008 i n May. The G roup took up a 37-me t re l ong pav i l i on o f f e r i ng de lec tab le de l i cac i es as we l l a s exc i t i ng games fo r t he young and o ld . Some 225 emp loyees f rom the G roup vo lun tee red and cha l ked up abou t 1 ,200 vo lun tee r manhou rs fo r t he even t . I n t he sp i r i t o f f un and compe t i t i on , t he s t a l l s compe ted aga ins t each o the r, a im ing to make the mos t sa l es fo r t he day. The even t was a wonde r fu l success, a t t r ac t i ng some 10,000 v i s i t o r s and ra i s i ng abou t S$600,000 fo r t he Hosp i ce. CDL has been a l ong- te rm co rpo ra te pa r t ne r t o Ass i s i Hosp i ce s i nce 1999, a cha r i t y o rgan i sa t i on t ha t p rov ides pa l l i a t i ve ca re to adu l t s and ch i l d ren su f f e r i ng f rom cance r and o the r l i f e - l im i t i ng i l l nesses.

Eve r y yea r, CDL makes i t a po in t t o engage Ass i s i Hosp i ce to eva l ua te t he e f fo r t s o f t he yea r and to a l so d i scuss t he poss ib l e co l l abo ra t i ve e f f o r t s i n t he com ing yea r. Th i s makes t he re l a t i onsh ip more p roduc t i ve as we can make ce r t a i n t ha t ou r con t r i bu t i ons a re more resou rce fu l l y u t i l i s ed and made more mean ing fu l .

COLLABORATIVE EFFORTS FOR OUR COMMUNITY

2008 has been a cha l l eng ing yea r. Many co rpo ra t i ons have been a f f ec ted f i nanc i a l l y by t he g loba l economic me l tdown and th i s has had a d i r ec t impac t on t he i r CSR commi tmen t s.

I n sp i t e o f t he down tu r n i n 2008, CDL has rema ined commi t t ed to ou r ex tens i ve r ange o f commun i t y p rog rammes. Ou r s t r a tegy has a lways ex tended beyond ph i l an th rop i c dona t i ons and ou r suppo r t has i nc l uded sus ta i nab le con t r i bu t i ons i n t he fo rm o f ac t i ve emp loyee vo lun ta r i sm, i n i t i a t i ng and imp lemen t i ng commun i t y ou t reach p rog rammes, t app ing on ou r w ide ne two rk o f r esou rces and con tac t s to co l l ec t i ve l y he lp a id and e f f ec t i ve l y se r ve t he commun i t y we ope ra te i n .

D E V E L O P I N G W I T H T H E C O M M U N I T Y

We a re happy to repo r t t ha t w i t h ac t i ve emp loyee engagemen t v i a a w ide r ange o f p rog rammes and even t s i n 2008, CDL emp loyees con t r i bu ted ove r 2 ,600 hou rs o f commun i t y wo rk , an i nc rease o f 4%. pa r t i c i pa t i on r a te a l so i nc reased f rom 50% in 2007 to 66% in 2008. We a re happy to repo r t t ha t t h i s exceeds ou r 2008 ta rge t s wh ich a re se t a t 50% emp loyee vo lun tee r pa r t i c i pa t i on and 2 ,500 emp loyee vo lun tee r manhou rs pe r yea r.

Recogn i s i ng t ha t t he commun i t y needs ou r he lp mos t when t imes a re bad , we have no t r educed ou r i n ves tmen t i n t he commun i t y i n 2008.

We expec t 2009 to be even more t enuous as t he impac t o f t he economic recess ion w i l l be more ha rd f e l t i n t he commun i t y. Neve r the l ess, we rema in s tead fas t i n con t i nu i ng to suppo r t ou r l ong-s tand ing bene f i c i a r i e s as we wea the r t h rough th i s f i nanc i a l s to rm toge the r. To comba t t h i s, we a im to i nnova t i ve l y s t r e t ch ou r r esou rces and p l ace ou r e f f o r t s and suppo r t i n a reas o f g rea te r need .

Ou r sus ta i ned s t r a tegy o f f ocus i ng ou r commun i t y i n i t i a t i ves i n t he fou r co re a reas i nc l ud ing t he env i ronmen t , t he a r t s, you th deve lopmen t and the l ess fo r t una te w i l l r ema in unchanged as we have deve loped s t ronge r and more syne rg i s t i c co l l abo ra t i ons w i t h ou r pa r t ne r s and bene f i c i a r i e s wh ich i nc l ude pub l i c and p r i va te o rgan i sa t i ons, non-gove r nmen ta l o rgan i sa t i ons (NGOs ) and gove r nmen ta l agenc ies.

Apa r t f r om sus ta i nab le commun i t y p rog rammes, we have a l so con t i nued to emp loy a mode l o f engag ing ou r s t akeho lde r s beyond ac t s o f ph i l an th ropy. Fo r 10 yea r s now, we have ma in t a i ned ac t i ve emp loyee vo lun tee r i sm th rough ou r emp loyee vo lun tee r p l a t f o rm, C i t y Sunsh ine C lub (CSC) , and l eve raged on them to l end the i r t a l en t and expe r t i se towa rds suppo r t i ng t he bene f i c i a r i e s t ha t r equ i r e ass i s t ance. CDL emp loyees we re mean ing fu l l y engaged i n he lp i ng t he needs o f t he l ess fo r t una te t h rough be f r i end ing, you th men to r sh ip, sha r i ng o f expe r t i se and poo l i ng o f r esou rces to he lp commun i t y pa r t ne r s. Fo r de ta i l s on CSC, p l ease re fe r t o page 79.

Employee Vo lunteer Manhours Employee Vo lunteer Par t ic ipat ion Rate

Chap te r 6

The spirit of voluntarism at CDL was at an all-time high during the Assisi Hospice Charity fun Day 2008. Some 225 employees from the CDL Group lent a hand to help out for a worthy cause.

2006

Total Manhours

2007 2008

2,575

2,242

2,644

33%

50%

66%

%

2006 2007 2008

70

50

30


fourth from left to right: Professor Tommy Koh, Ambassador-At-Large, Ministry of foreign Affairs, President S R Nathan, Mr Kwek Leng Loo and Mr Niam Chiang Meng, Permanent Secretary, Ministry of Community Development, Youth and Sports and Chairman of President’s Challenge 2008 Steering Committee, together with generous donors of “Heart Voyage 2”.

“Heart Voyage 2” features over 100 captivating images exploring the intricate relationship between Man and Nature.

Ga la D inne r, he ld a t The S t . Reg i s S ingapo re, was a t t ended by some 450 d i s t i ngu i shed gues t s f rom bo th pub l i c and p r i va te sec to r s, and ra i sed ove r S$300,000, exceed ing t he t a rge t o f S$250,000. I n t he p l ann ing o f t he even t , eve r y e f f o r t was t aken to ensu re t ha t ca rbon em iss ions wou ld be kep t a t a m in imum such as ensu r i ng t ha t t he food and déco r we re l oca l l y sou rced . I t was a l so an oppo r tune t ime to unve i l “Hea r t Voyage 2” , t he second pho to a r t book by ou r Manag ing D i rec to r, Mr Kwek Leng Joo. He dona ted 60 cop ies o f h i s a r t book wh ich he lped ra i se an add i t i ona l S$30,000 fo r t he G reen cause.

I n Oc tobe r, t he sa l e o f t he l im i t ed ed i t i on “Hea r t Voyage 2” , i nc l ud ing spec i a l l y au tog raphed cop ies by p res iden t S R Na than , a l so he lped to r a i se some S$150,000 fo r 31 bene f i c i a r i e s o f p res iden t ’s Cha l l enge 2008. A to t a l o f 23 o rgan i sa t i ons dona ted to t h i s wo r thy p ro j ec t .

We have a l so rema ined co rpo ra te sponso rs o f va r i ous env i ronmen ta l o rgan i sa t i ons he re and ab road . CDL has been a co rpo ra te pa t ron o f t he Ch ina Exp lo ra t i on and Resea rch Soc ie t y f o r ove r a decade, con t r i bu t i ng

i n -cash and i n -k i nd suppo r t t owa rds t he i r na tu re and cu l t u ra l conse r va t i on wo rks. CDL i s a co rpo ra te pa t ron o f SEC whose m iss ion i s t o educa te, i n sp i r e and ass i s t i nd i v i dua l s, co rpo ra t i ons and env i ronmen ta l g roups to ca re fo r and p ro tec t t he env i ronmen t . I n 2008, CDL has a l so con t i nued to sponso r NSS ’ “Na tu re Wa tch” magaz i ne.

We pa r t i c i pa ted i n g loba l campa igns l i ke “Ea r t h Hou r ” o rgan i sed by t he Wor ld W i l d l i f e Fund he ld on 29 March 2008. I n add i t i on to t u r n i ng o f f t he f açade bu i l d i ng l i gh t s and the ma in l i gh t s i n t he common a reas o f f i ve o f CDL bu i l d i ngs f rom 8 pm to 9 pm as a ges tu re to comba t g loba l wa rm ing, we a l so encou raged ou r t enan t s to pa r t i c i pa te and tu r n t he i r o f f i ce l i gh t s o f f du r i ng t he sa id hou r. I n 2009, we have doub led ou r e f f o r t s, ex tend ing t he campa ign to 11 bu i l d i ngs. We have been ac t i ve l y r a l l y i ng ou r t enan t s to pa r t i c i pa te and a re happy to repo r t t ha t 99% o f ou r t enan t s have commi t t ed to j o i n i ng t he campa ign w i t h ou r encou ragemen t . I n an e f fo r t t o p romote t he campa ign , CDL a l so suppo r ted Env i ronmen ta l Cha l l enge Organ i sa t i on (S ingapo re ) ’s Ea r t h Hou r @ The Hea r t l ands whe re t he commun i t y pa r t i c i pa ted by t u r n i ng t he i r l i gh t s o f f a t home and headed down to a cho i ce o f f i ve d i f f e ren t venues a l l ove r S ingapo re to en joy a va r i e t y o f p rog rammes.

I n ou r 2009 ca lenda r, “Me lod ies ” , we embraced the s imp le p l easu res t ha t l i t t l e b i rds b r i ng to us w i t h me lod i c mus i c t ha t b r i ng a sm i l e on

Shaping Our Env i ronment

I n 2008, ou r g reen e f fo r t s r ema ined unaba ted and i t has been mos t hea r t en i ng to see i nc reased i n te res t , suppo r t and pa r t i c i pa t i on by pub l i c and p r i va te o rgan i sa t i ons a l i ke.

Ongo ing g reen i n i t i a t i ves i nc l ude p ro j ec t : Eco-O f f i ce, i n i t i a t ed by CDL w i t h S ingapo re Env i ronmen t Counc i l (SEC ) , a NGO, i n 2002 to he lp bus i nesses go g reen i n t he o f f i ce. Compan ies a re a l so encou raged to pa r t i c i pa te i n an on l i ne g reen o f f i ce aud i t and when ready, a fo rma l o f f i ce aud i t i s conduc ted by an i ndependen t aud i t o r. Success fu l compan ies w i l l be awa rded the G reen O f f i ce Labe l ce r t i f i ca t i on . The p rog ramme has ga ined much momen tum, as ev idenced by f rom the i nc reased i n te res t f r om compan ies who dec ide to go g reen . I n 2008, 15 compan ies i nc l ud ing Bp, t he Roya l Bank o f Sco t l and and CDL’s subs id i a r y, CBM p te. L td . , we re p resen ted w i t h t he i r ce r t i f i ca t i ons du r i ng t he G reen O f f i ce Labe l p resen ta t i on Ce remony. S ince i t s l aunch i n 2005, 37 o f f i ces have been ce r t i f i ed w i t h t he G reen O f f i ce Labe l . Fo r more i n fo rma t i on abou t p ro j ec t : Eco-O f f i ce, p l ease v i s i t www.ecoo f f i ce.com.sg. The a f f i rma t i ve suppo r t ev iden t i n t he i nc reased demand and i n te res t spu r s bo th SEC and CDL to

g row the p rog ramme fu r t he r. Towa rds t h i s end , we cons tan t l y engage SEC i n d i a l ogue to s t r a teg i se to make the p rog ramme even be t t e r.

We suppo r ted two key C lean and G reen S ingapo re (CGS) even t s i n 2008 –10% Ene rgy Cha l l enge and the Schoo l s ’ Ca r n i va l 2008 by Na t i ona l Env i ronmen t Agency (NEA) . The 10% Ene rgy Cha l l enge was l aunched i n Ap r i l 2008 w i t h t he a im o f encou rag ing an ene rgy-e f f i c i en t l i f e s t y l e a t home. As pa r t o f t he campa ign , 1 .13 m i l l i on Ene rgy E f f i c i ency i n fo rma t i on k i t s con ta i n i ng use fu l ma te r i a l s such as ene rgy-sav i ng t i p s and s t i cke r s we re sen t t o a l l househo lds i n S ingapo re. We a l so suppo r ted a supp lemen ta r y p ro j ec t t o t he 10% Ene rgy Cha l l enge, p ro j ec t Ca rbon Ze ro, wh i ch i s managed by SEC and t a rge t s p r ima r y 3 to 5 ch i l d ren w i t h s im i l a r ob jec t i ves. The p ro j ec t ga r ne red the pa r t i c i pa t i on o f a lmos t 1 ,300 s tuden t s. Fo r de ta i l s on t he CGS Schoo l s ’ Ca r n i va l , p l ease re fe r t o page 78.

CDL a l so sponso red eco-ac t i v i t i e s such as t he Na t i ona l Un i ve r s i t y o f S i ngapo re (NUS) G reen Ca r n i va l wh i ch he lped b r i ng t he u rgen t message o f env i ronmen ta l conse r va t i on to ove r 30,000 NUS unde rg radua tes, emp loyees and academics, t h rough va r i ous s tuden t - i n i t i a t ed env i ronmen ta l p ro j ec t s.

To f u r t he r ou r suppo r t t owa rds env i ronmen ta l conse r va t i on and you th deve lopmen t , CDL s igned a Memorandum o f Unde rs t and ing (MoU) w i t h t he NUS Schoo l o f Des ign and Env i ronmen t t h rough i t s Mas te r o f Sc ience (Env i ronmen ta l Managemen t ) p rog ramme i n Augus t 2008. The ob jec t i ve o f t he co l l abo ra t i on i s t o f i nd so lu t i ons and deve lop p roduc t s t ha t add ress env i ronmen ta l i s sues wh ich may be i nco rpo ra ted i n to f u tu re CDL p ro j ec t s. Th i s ma rks t he f i r s t pa r t ne r sh ip be tween NUS and a l ead ing p rope r t y deve lope r i n t he a rea o f env i ronmen ta l managemen t to deve lop wo rkab le so lu t i ons to ensu re t he sus ta i nab i l i t y o f t he bu i l t env i ronmen t .

I n May 2008, CDL hos ted t he G reen Hea r t Ga l a D inne r to r a i se f unds to f u r t he r t he conse r va t i on and educa t i ona l wo rk o f ou r l ong-s tand ing pa r t ne r s and l oca l NGOs, SEC and Na tu re Soc ie t y (S i ngapo re ) (NSS) . The

A Mou was signed between Mr Kwek Leng Joo, Managing Director of CDL and Professor Heng Chye Kiang, Dean of School of Design and Environment, NuS to develop green solutions for the built environment.


CDL volunteers, students from Raffles Institution and beneficiaries are hard at work at the HomeCreation Project, a community initiative to help improve the living conditions of the needy.

Cul t ivat ing the Leaders of Tomorrow

I n ves t i ng i n you th deve lopmen t p rog rammes rema ined a p r i o r i t y. I n Augus t 2008, ove r 30 emp loyee vo lun tee r s f rom CDL and subs id i a r y company CBM p te. L td . pa r t i c i pa ted i n HomeCrea t i on , an annua l commun i t y p ro j ec t by s tuden t s f rom Ra f f l e s I ns t i t u t i on , i n co l l abo ra t i on w i t h D reams @ Ko lam Aye r (be low ) . Th i s i n i t i a t i ve was a imed to ha r ness t he ene rgy o f you ths i n commun i t y wo rk and improve t he l i v i ng cond i t i ons o f t he needy. Some 60 low- income fam i l i e s i n Gey l ang Bah ru bene f i t ed f rom hav i ng t he i r homes repa in ted and re fu rb i shed . M ino r r epa i r wo rks such as f i x i ng l eak i ng p ipes, ch ipped ce i l i ng, f au l t y e l ec t r i ca l socke t s and o the r

de fec t s w i t h i n t he home were a l so ca r r i ed ou t . Th i s p ro j ec t i s ano the r f i ne examp le o f CDL’s be l i e f i n t he e f f i cacy o f t he 3p pa r t ne r sh ip mode l .

A l ong- t ime suppo r te r o f t he NYAA, CDL has con t i nued to con t r i bu te s i gn i f i can t l y t o NYAA’s i n i t i a t i ves such as t he pho tog raphe rs Ne two rk to b r i ng ou t t he bes t i n young S ingapo reans.

Ou r eco-commun i t y p ro j ec t s wh ich i nvo l ves t he you th men t i oned ea r l i e r i n t h i s r epo r t a re syne rg i s t i c w i t h ou r pass ion towa rds you th deve lopmen t and ha r ness i ng a new eco-consc ious gene ra t i on .

ou r f aces and b r i gh ten ou r eve r yday. The ca l enda r i s t he 12 th vo lume o f ou r “Beau t y o f Na tu re ” Co rpo ra te Ca lenda r Se r i es wh ich i s d i s t r i bu ted to ou r bus i ness assoc i a tes and emp loyees to re i n fo rce t he message on the need to p ro tec t ou r na tu ra l he r i t age and p rese r ve i t s beau t y da i l y.

Support ing the Ar ts

The b ienn i a l S i ngapo re Young pho tog raphe r Awa rd (SYpA) i s i n i t i a t ed and managed by CDL, i n pa r t ne r sh ip w i t h f i ve ma jo r pho to c l ubs, t he Na t i ona l A r t s Counc i l and Na t i ona l You th Ach ievemen t Awa rd (NYAA) Counc i l . He ld fo r t he 2nd t ime, t he compe t i t i on a t t r ac ted some 850 en t r i e s f rom schoo l s, you th o rgan i sa t i ons, pho tog raphy c l ubs and f r ee l ance pho tog raphe rs, r ep resen t i ng some 5 ,000 works o f pho tog raphy. A imed a t nu r t u r i ng young l oca l pho tog raphy t a l en t s, t he re was a l so a CDL Young A rch i t ec tu ra l pho tog raphe r Awa rd ca tego r y, t o recogn i se t a l en t s who have an eye fo r t he beau t y o f bu i l d i ngs.

p romot i ng g rea te r app rec i a t i on o f t he a r t s i n S ingapo re, CDL, a long w i t h ou r j o i n t -ven tu re pa r t ne r s a l so con t r i bu ted t he use o f t he Sou th Beach s i t e as one o f t he hos t venues fo r t he second S ingapo re B ienna le 2008 he ld be tween Sep tember and November. The s i t e was a l so used as t he venue o f cho i ce fo r t he open ing o f t he even t .

“Melodies”, volume 12 of the “Beauty of Nature” Corporate Calendar Series, showcases the photographic works of Mr Kwek Leng Joo.

Third from right: Guest of Honour Dr Vivian Balakrishnan, Mr Kwek Leng Joo and Mr Edmund Cheng, Chairman of National Arts Council with winners of SYPA and the CDL Young Architectural Photographer Award at the prize presentation and exhibition launch.


CSC’S MiSSion“To light up the lives of the less fortunate by offering our friendship and to contribute towards making our society a better place.”

IN FOCUS:C ITY SUNSHINE CLUB – A DECADE OF PUBL IC SERV ICE

C i t y Sunsh ine C lub (CSC) i s an emp loyee vo lun tee r c l ub s t a r t ed i n 1999. I n i t i a t ed by CDL Manag ing D i rec to r Mr Kwek Leng Joo, CSC ’s a im i s t o nu r t u re a sp i r i t o f vo l un ta r i sm among the emp loyees and cu l t i v a te an engaged work fo rce. Th rough CSC, t he Company i s ab le to f ac i l i t a t e and encou rage s t a f f and the i r f am i l i e s to l end a he lp i ng hand to t he l ess fo r t una te t h rough a b road range o f s t r uc tu red p rog rammes tha t r each ou t t o t he unde rse r ved . CSC has g rown f rom s t reng th to s t r eng th i n t he l a s t decade, hav i ng es tab l i shed a b road range o f commun i t y p rog rammes tha t i nc l udes an e lde r l y be f r i end ing p rog ramme and a deve lopmen t men to r i ng p rog ramme fo r ch i l d ren a t r i s k as we l l a s suppo r t i ng o the r commun i t y ac t i v i t i e s t h rough vo lun ta r i sm th roughou t t he ca l enda r yea r.

I n 1999, CSC s ta r t ed an e lde r l y be f r i end ing p rog ramme. Eve r y mon th , CSC vo lun tee r s wou ld head down to I ndus Road and the Ch ina town a rea , whe re many e lde r l y poo r l i ve i n one-bed room pub l i c hous ing f l a t s. Vo lun tee r s spend t ime w i t h t he needy e lde r l y, ex tend ing t he i r f r i endsh ip and ca re, and a l so b r i ng a long w i t h t hem food p rov i s i ons and o the r necess i t i e s. Vo lun tee r s a re a l so v i g i l an t du r i ng t he v i s i t s t o make su re t he e lde r l y a re i n good hea l t h and tha t t he i r bas i c needs a re t aken ca re o f. Beyond th i s, t he vo lun tee r s f r equen t l y o rgan i se ou t i ngs t h roughou t t he yea r and du r i ng t he f es t i ve pe r i od . These i nc l ude n igh t ou t i ngs to t he ope ra , f es t i ve l unches and o the r f un ac t i v i t i e s to b r i ng some chee r to many o f t hem who a re l one l y. The p rog ramme has s i nce expanded to t he e lde r l y l i v i ng i n Buk i t Me rah , Beo C rescen t and Te lok B l angah .

Dedicating their time and energy, CDL volunteers help to enrich the social and emotional development needs through character-building activities of the children from Dreams @ Kolam Ayer.

I n 2003, CSC was i nvo l ved i n a you th p rog ramme wh ich focuses on cha rac te r deve lopmen t to he lp ch i l d ren a t r i s k o f de l i nquency rema in i n t he educa t i on ma ins t r eam. I n Feb rua r y 2007, CSC expanded the p rog ramme to i nc l ude the you th a t Ko l am Aye r, o f V i r i y a Commun i t y Se r v i ces, a non-gove r nmen ta l o rgan i sa t i on . CSC vo lun tee r s unde rgo spec i a l t r a i n i ng to equ ip t hemse l ves w i t h t he sk i l l s t o engage the you th du r i ng t he week l y two-hou r sess ions, wh i ch i nc l ude s to r y te l l i ng, ro l e p l ay, a r t and c ra f t ac t i v i t i e s as we l l a s t u i t i on i n schoo lwo rk . Vo lun tee r s a l so o rgan i se camps and o the r en r i chmen t ac t i v i t i e s fo r t he you th du r i ng t he schoo l ho l i days.

By 2008, CSC vo lun tee r s a re mob i l i sed i n a number o f ac t i v i t i e s fo r t he commun i t y, be i t sma l l g roup ou t i ngs and be f r i end ing sess ions w i t h t he t e rm ina l l y i l l , o r l a rge-sca le f und ra i s i ng even t s fo r t he needy. The C lub a l so co l l abo ra tes i n commun i t y p ro j ec t s w i t h l i ke -m inded pa r t ne r s such as t he Boys B r i gade (BB ) and Ra f f l e s I ns t i t u t i on fo r t he i r annua l BB Ca res p rog ramme and HomeCrea t i on p ro j ec t s respec t i ve l y. These co l l abo ra t i ons a re pa r t i cu l a r l y mean ing fu l as t hey p romote t he sp i r i t o f vo l un ta r i sm and k i ndness amongs t S ingapo re ’s you th .

IN FOCUS:SUPPORT ING THE 3P MODEL THROUGH CASP

CDL has been a l ong-s tand ing advoca te o f t he Gove r nmen t ’s 3p mode l wh i ch ca l l s f o r s yne rg i s t i c pa r t ne r sh ips be tween the peop le, p r i va te and pub l i c Sec to r s. A f i ne examp le be ing CDL’s pa r t i c i pa t i on i n NEA’s Co rpo ra te and Schoo l pa r t ne r sh ip p rog ramme (CASp) , f o rmer l y known as t he Adop t -a -Schoo l Scheme, s i nce 2005 when we “adop ted” ou r f i r s t schoo l , Ca tho l i c H igh Schoo l (p r ima r y ) . CASp a ims to seek sha red owne rsh ip by t he schoo l s and co rpo ra te pa r t ne r s on env i ronmen ta l managemen t and sus ta i nab i l i t y by c rea t i ng awa reness and pa r t i c i pa t i on on env i ronmen ta l i s sues and ac t i v i t i e s amongs t s t uden t s t h rough the pa r t ne r sh ip e f f o r t s. To-da te, CDL has “adop ted” a to t a l o f s i x schoo l s i nc l ud ing Ca tho l i c H igh Schoo l (p r ima r y and Seconda r y ) , CH IJ S t . N i cho l as G i r l s ’ Schoo l (p r ima r y and Seconda r y ) and the newes t add i t i on to t he f am i l y, Ma r i s S te l l a H igh Schoo l (p r ima r y and Seconda r y ) whom we adop ted i n 2008.

I n f ac t i n Oc tobe r 2008, Mar i s S te l l a H igh Schoo l , unve i l ed i t s p l edge towa rds t he env i ronmen t , i n pa r t ne r sh ip w i t h CDL. As pa r t o f t h i s

Catholic High School (Primary) showcased an innovative project on mosquito breeding which received a mention by Guest of Honour, Senior Parliamentary Secretary, Ministry of the Environment and Water Resources in her opening speech at the Schools’ Carnival.

mean ing fu l ce remony, Ko i we re re l eased i n to t he schoo l pond to a t t es t t o t he schoo l ’s commi tmen t t o t he g reen cause as we l l a s to r a i se awa reness amongs t t he s tuden t s.

Each yea r f o r t he CGS Schoo l s ’ Ca r n i va l , CDL w i l l beg in to mee t each schoo l ea r l y i n t he yea r t o d i scuss i n de ta i l and re f i ne t he env i ronmen ta l p ro j ec t i deas and work c lose l y w i t h t hem to deve lop t he p ro j ec t t i l l t he exh ib i t i on i n November. Depend ing on t he needs o f t he p ro j ec t , CDL’s suppo r t ex tends beyond the cos t o f t he p ro j ec t t o i nc l ude con t r i bu t i ons such as emp loyee vo lun ta r i sm, expe r t consu l t a t i on and supp l i e r suppo r t . The schoo l s w i l l a l so be p rov ided w i t h an exh ib i t i on boo th to p resen t t he f i na l chosen p ro j ec t t o v i s i t o r s o f t he exh ib i t i on .

A t t he CGS Schoo l s ’ Ca r n i va l 2008, t he CDL adop ted schoo l s conce i ved and p resen ted a w ide r ange o f dynam ic and excep t i ona l env i ronmen ta l p ro j ec t s i nc l ud ing deve lop ing g reen me thods o f o i l r emova l (CH IJ S t . N i cho l as G i r l s ’ Schoo l ) , i nnova t i ve s t r a teg ies to p reven t mosqu i to b reed ing (Ca tho l i c H igh Schoo l p r ima r y ) and exh ib i t i ng c rea t i ve d ig i t a l exp ress ions on env i ronmen ta l conse r va t i on (Ma r i s S te l l a H igh Schoo l ) . The p ro j ec t s a l so caugh t t he eye o f t he j udges and Ca tho l i c H igh Schoo l was awa rded second p l ace fo r Bes t p ro j ec t i n t he p r ima r y Ca tego r y wh i l e CH IJ S t . N i cho l as G i r l s ’ Schoo l (Seconda r y ) was acco rded th i rd p r i ze i n t he Open Ca tego r y a t t he Env i ronmen t p ro j ec t Compe t i t i on 2008.

As w i t h p rev ious yea r s, t he two-day exh ib i t i on was a success w i t h pa r t i c i pa t i on f rom ove r 190 schoo l s, an i nc rease o f ove r 10% f rom 2007, and a t t ended by some 15,000 s tuden t s, t eache rs and pa ren t s.

CASp rema ins an impor t an t ou t reach p rog ramme fo r CDL to reach ou t t o t he schoo l s and the you th to ha r ness a pass ion towa rds env i ronmen ta l conse r va t i on .


GRI IND ICATORS REPORT PAGE

STRATEGY AND ANALYSIS

1.11.2

2 , 16-17, AR (10-13, 34-40)57, 62, 72, 80, AR (34-40)

ORGANISATIONAL PROFILE

2.1 2 .22.3 2 .42.52.62.72.82.92.10

66 6 , AR (17 )6 , AR (17 )6 , 10, AR (17 )6 , AR (17, 61 )6 , AR (17 )6-9 , AR (17, 163-165)AR (17, 163-165)29-30, AR (31-33)

REPORT PARAMETRES

3.1 3 .2 3 .3 3 .43.5 3 .63.7 3 .8 3 .9 3 .103.11 3 .123.13

11AR (36-40)101110-11, 14-151010101110, 51, 54, 598,11, 51, 598111, 82

GOVERNANCE, COMMITMENTS AND ENGAGEMENT

4.14.24.34.44.54.64.74.84.94.10 4 .114.124.134.144.154.164.17

16-18, 38-43, AR (22-30)39, AR (22-30)38-39, AR (22 )21, AR (23-30)38-39, 64, AR (26-27)38, AR (23-30)38-39, AR (23-25)14-18, 38-39, AR (23-30)15-16, 40, AR (23-30)AR (26 )40-4110, 22, 24-25, 38, 62, AR (18-20)16, 62, 7414, 20-2314, 1614-2314-17


DISCLOSURE ON MANAGEMENT APPROACH

DMAECDMAENDMALADMAHRDMASODMAPR

8-9, 15, 40-43, AR (10-13, 76-80)15-18, 46-47, 54, 5915-17, 42, 62, AR (20,41 )6215-17, 39-4115-17, 40-41

ECONOMIC

Economic Per formance

EC1EC2EC3

7-916, 19, 2565

Ind i rect Economic Impacts

EC8 27

ENVIRONMENTAL

Mater ia ls

EN3EN4 EN5 EN6 EN7

48 , 5948, 52, 54, 5952, 542652, 54

Water

EN8EN10

49 , 5349, 58

Biodivers i ty

EN13 EN14

5151

Emiss ions, E f f luents , and Waste

EN 16EN 17 EN 18 EN 21

595926, 52, 54, 5949

Products and Serv ices

EN26 25 , 52, 54

LABOUR PRACTICES AND DECENT WORK

Employment

LA2 LA3

6, 6465-66

GRI CONTENT INDEX

SUMMARY OF CDL PERFORMANCE DATA 2007 2008

Socia l

Annua l emp loyee tu rnover ra te 16.8% 17.1%

Employee sa t i s fac t ion N .A . ≥ 90%

Days o f med ica l l eave taken ≤ 4 ≤ 4

Gender D ive rs i f i ca t ion :%o f fema les as Heads o f Depar tment 55% 57%

Average years o f se r v ice per employee 8.3 8.1

Tota l CSR and Env i ronment- re la ted t ra in ing hours 1 ,193 1,075

New deve lopments to be we l l - ranked on CONQUAS Yes Yes

Al l new deve lopments to be cer t i f i ed BCA Green Mark Go ld and above Yes Yes

Employee par t i c ipa t ion ra te per year 50% 66%

Employee vo lun teer hours per year 2 ,242 2,644

Hea l th and Sa fe ty :

- A t the Corpora te Of f i ce : I n ju r y ra te and occupat iona l d i sease

0 0

- A t CDLwork s i tes : Acc iden t F requency Ra te a t CDLWork S i tes (Number o f workp lace acc iden ts per mi l l i on manhours worked )

0 .4 0.52

I n ju r y Ra te a t CDLWork S i tes (Number o f fa ta l and non- fa ta l workp lace in ju r iesper 100,000 persons employed )

Data Unava i lab le 273

Envi ronment

Energy Useda t Work S i tes kWh/m 2 55 43

Water Used a t Work S i tes m 3/m 2 0 .7 0.68

Cons t ruc t ion Waste Genera ted a t Work S i tes kg/m 2 65.9 59.87

Energy Useda t 11CDLCommerc ia l Bu i ld ings kWh/month/m 2 18.856 18.839

Energy Useda t 5 CDL Indus t r ia l Bu i ld ings kWh/month/m 2 10.443 9.364

Water Useda t 11CDLCommerc ia l Bu i ld ings m 3/month/m 2 0 .142 0.161

Water Useda t 5 CDL Indus t r ia l Bu i ld ings m 3/month/m 2 0 .088 0.089

Paper Recyc led a t 16CDLBu i ld ings kg 417,074 384,047

Tenants Par t i c ipa t ion Ra te fo r Paper Recyc l ing a t 16CDLBu i ld ings % 81 88

Energy Used a t the Corpora te Of f i ce kWh 634,198 569,640

Paper Used a t the Corpora te Of f i ce (Number o f A4 reams) 5 ,410 4,796

Tota l Energy Used kWh 68,948,060 65,421,737

Tota l Carbon Emiss ions tonnes CO2

36,144 34,367

SUMMARY OF CDL PERFORMANCE DATA


INDEPENDENT ASSURANCE STATEMENT To the Managemen t and S takeho lde r s o f C i t y Deve lopmen ts L im i t ed

È re-S was commiss ioned i n May 2009 by C i t y Deve lopmen ts L im i t ed [CDL ] to p rov ide assu rance tha t t he con ten t o f CDL Sus ta i nab i l i t y Repo r t 2009 i s accu ra te, r e l i ab l e and suppo r ted by so l i d da ta co l l ec t i on sys tems.

The assu rance engagemen t cove r s t he Sus ta i nab i l i t y Repo r t i n fo rma t i on re l a ted to CDL’s s t r a tegy and ope ra t i ons i n t he con tex t o f sus ta i nab i l i t y. Th i s i nc l udes sus ta i nab i l i t y - re l a ted f i gu res, s t r a tegy s t a temen ts, managemen t sys tems and assoc i a ted p rocesses, po l i c i es and p rocedu res. The assu rance engagemen t was d rawn on the ISAE 3000 and AA1000AS s tanda rds, wh i ch we re used as gu idance fo r t he aud i t p rocess, me thodo logy, eva l ua t i on c r i t e r i a and assu rance repo r t f o rma t t i ng.

Assurance Level

Ère-S p rov ided an ove ra l l mode ra te l e ve l o f aud i t , wh i ch i nc l udes ev idence ga the r i ng f rom sou rces w i t h s imp le da ta ve r i f i ca t i on . Fo r qua l i t a t i ve i n fo rma t i on , t he assu rance i s based on ev idence tha t t he s t a temen ts t r u l y r e f l ec t CDL’s ope ra t i ona l and s t r a teg i c ac t i v i t y.

The fo l l ow ing c r i t e r i a we re used to eva l ua te qua l i t y o f t he repo r t con ten t ; Accu racy wh ich i s de f i ned as t he l eve l o f co r rec tness o f i n fo rma t i on i n r ega rd to t he sou rce i t i s ob ta i ned f rom, Re l i ab i l i t y wh i ch i s de f i ned as how the i n fo rma t i on i s suppo r ted by re l i ab l e da ta co l l ec t i on sys tems and I n t eg ra t i on ( f o r qua l i t a t i ve i n fo rma t i on ) wh i ch i s de f i ned as t he l eve l o f suppo r t f r om the managemen t and the ev idence o f imp lemen ta t i on .

Fo r subs tan t i a l e l emen ts, a more de ta i l ed aud i t ana l y s i s based on the AA1000 Accoun tAb i l i t y p r i nc ip l es (ma te r i a l i t y, i nc l us i veness and respons i veness ) was used when poss ib l e bu t d id no t i nc l ude i n -dep th and mu l t i - l e ve l r esea rch , s t a t i s t i ca l ana l y s i s, s t akeho lde r engagemen t ana l y s i s and company pe r fo rmance ana l y s i s.

Methodology

prepa ra t i on o f t he assu rance engagemen t cons i s t ed o f so r t i ng repo r t i n fo rma t i on and de f i n i ng aud i t r equ i r emen ts. A round 160 s t a temen ts and da ta se t s we re i den t i f i ed i n t he Sus ta i nab i l i t y Repo r t and c l ass i f i ed acco rd ing to t he re l evan t da ta owne rs and the t ype o f ev idence requ i r ed fo r t he aud i t p rocess.

The aud i t phase i nc l uded 12 I n te r v i ews to co l l ec t ev idence o f da ta and ob ta i n an unde rs t and ing o f t he unde r l y i ng p rocesses. I n t e r v i ewees i nc l uded key i nd i v i dua l s f r om the depa r tmen t s o f Env i ronmen t , Hea l t h & Sa fe t y, Human Resou rce, p ro j ec t s, p rope r t y & Fac i l i t i e s Managemen t , Co rpo ra te Commun ica t i on , Co rpo ra te Sec Se r v i ces, I n t e r na l Aud i t , Cus tomer Re l a t i onsh ip Managemen t , Admin i s t r a t i on and the Sen io r Managemen t Team. A sma l l number o f emp loyees, supp l i e r s and ex te r na l agenc ies we re a l so i n te r v i ewed .

I n fo rma t i on and answers co l l ec ted du r i ng t he aud i t we re assessed and recommenda t i ons we re exp ressed immed ia te l y t o a l l ow amendmen t by t he CSR repo r t i ng t eam.

Findings

Overa l l , a good qua l i t y l e ve l o f da ta sou rce and ca l cu l a t i on me thods was found . The accu racy o f t he ma jo r i t y o f t he e l emen ts aud i t ed cou ld d i r ec t l y be va l i da ted t h rough the p rov ided p roo f o f ev idence and de ta i l ed desc r i p t i ons o f CSR- re l a ted p rocesses, po l i c i es and managemen t sys tems. Re l i ab i l i t y was o f t en en fo rced by t he con f i rma t i on o f t he same ev idence f rom mu l t i p l e i n t e r v i ewees.


LABOUR PRACTICES AND DECENT WORK

Occupat ional Heal th and Safety

LA7 LA 8

50-51, 6766-67, 69

Tra in ing and Educat ion

LA10 LA12

64-6564

Divers i ty and Equal Opportun i ty

LA13 62-63

HUMAN RIGHTS

Non-Discr iminat ion

HR4 62

SOCIETY

Corrupt ion

SQ2SQ3

40-4165, 68

PRODUCT RESPONSIBIL ITY

Customer Heal th and Safety

PR1 20

Product and Serv ice Label ing

PR5 20

10PR INC IPLESOFTHEUNGLOBALCOMPACT REPORTPAGE

PRINCIPLE 1 : Bus inesses shou ld suppor t and respec t the p ro tec t ion o f in te rna t iona l l y p roc la imed human r igh ts .

16, 62

PRINCIPLE 2 : Make sure tha t they a re no t compl ic i t i n human r igh ts abuses .

62

PRINCIPLE 3 : Bus inesses shou ld upho ld the f reedom o f assoc ia t ion and the e f fec t i ve recogn i t i on o f the r igh t to co l l ec t i ve barga in ing .

62

PRINCIPLE 4 : E l im ina t ion o f a l l f o rms o f fo rced and compu lsor y l abour.

62

PRINCIPLE 5 : Ef fec t i ve abo l i t i on o f ch i ld l abour 62

PRINCIPLE 6 : E l im ina t ion o f d i sc r im ina t ion in respec t o f emp loyment and occupat ion .

62

PRINCIPLE 7 : Bus inesses shou ld suppor t a p recaut ionar y approach to env i ronmenta l cha l l enges .

14-17, 46

PRINCIPLE 8 : Under take in i t i a t i ves to p romote g rea te r env i ronmenta l respons ib i l i t y.

17-19, 46-47

PRINCIPLE 9 : Encourage the deve lopment and d i f fus ion o f env i ronmenta l l y f r i end ly techno log ies .

19 , 26-28

PRINCIPLE 10: Bus inesses shou ld work aga ins t co r rup t ion in a l l i t s fo rms, inc lud ing ex to r t i on and b r iber y.

39

AR - Annua l Repo r t 2008 (p lease v i s i t www.cd l . com.sg )

UN GLOBAL COMPACT INDEXGRI CONTENT INDEX (CONT’D )


The aud i t uncove red a sma l l number o f m ino r i naccu rac i es t ha t we re due to i ncomp le te ca l cu l a t i on me thods. These i s sues we re p rompt l y assessed and amended by t he CSR repo r t i ng t eam. The res t o f t he recommenda t i ons exp ressed by È re-S cove red gene ra l imp rovemen t o f t he repo r t , such as mod i f i ca t i on o f wo rd ing and fo rma t t i ng o r use o f add i t i ona l i n fo rma t i on found du r i ng t he aud i t t o re i n fo rce t he re l evance, t r anspa rency and p rec i s i on o f cu r ren t s t a temen ts and f i gu res. The CSR repo r t i ng t eam has t aken no te o f t he recommenda t i ons and amended the repo r t acco rd ing l y.

Assurance Conclus ion

I n ou r op in ion , t he f i nd i ngs o f t he assu rance engagemen t p rov ide con f i dence, w i t h i n sa t i s f ac to r y l im i t s, t ha t CDL Sus ta i nab i l i t y Repo r t accu ra te l y r ep resen t s t he company sus ta i nab i l i t y p ro f i l e and pe r fo rmance fo r t he repo r t i ng pe r i od . We a re con f i den t t ha t t he s t a temen ts and f i gu res p rov ided i n t he repo r t a re suppo r ted by comprehens i ve and ve r i f i ab l e da ta and tha t t he unde r l y i ng managemen t p rocesses aud i t ed a re a l i gned w i t h t he sus ta i nab i l i t y s t r a tegy and po l i c i es o f t he company. We a re a l so sa t i s f i ed t ha t t he repo r t i s an app rop r i a t e rep resen ta t i on o f CDL’s engagemen t to sus ta i nab i l i t y r e f l ec ted i n t he top managemen t o f t he company.

Mov ing fo rwa rd , t he fo l l ow ing recommenda t i ons have been made :

• A l l KP I s, da ta co l l ec t i on p rocedu res and ca l cu l a t i on me thods shou ld be c l ea r l y de f i ned and documen ted i n a p ro toco l t o p reven t t he samem ino ri n accu rac i es found i n t h i s r epo r t and re i n fo rce i t s cohe rence and comparab i l i t y.

• A more de ta i l ed ma te r i a l i t y based assessmen t shou ld be unde r t aken to de te rm ine newand s t r eng then cu r ren t a reas o f f ocus fo r t he repo r t con ten t .Th i s shou ld a l so i nc l ude p rocesses fo r s t ronge r s t akeho lde r engagemen t .

The above f i nd i ngs and add i t i ona l sugges t i ons fo r improvemen t have been p resen ted to t he managemen t o f CDL i n a more de ta i l ed assu rance repo r t .

Responsib i l i ty and L imi tat ions :

Ère-S respons ib i l i t y i s t o execu te t he assu rance engagemen t , p repa re t he assu rance repo r t and th i s assu rance s t a temen t fo r t he managemen t o f CDL a lone and fo r no o the r pu rpose. A l l i n fo rma t i on i nc l ud ing s t a temen ts and f i gu res con ta i ned w i t h i n t he CSR repo r t a re t he respons ib i l i t y o f CDL.

È re-S engagemen t focussed on sus ta i nab i l i t y pe r fo rmance and ac t i v i t i e s o f CDL du r i ng t he repo r t i ng pe r i od . Howeve r, È re -S d id no t con f i rm whe the r o r no t a l l ma te r i a l i s sues re l a t i ng to s t akeho lde r s engagemen t o r sus ta i nab i l i t y pe r fo rmance a re i nc l uded i n t he repo r t and f i gu res o r s t a temen ts no t r e l a t ed to sus ta i nab i l i t y and a l r eady suppo r ted by ex i s t i ng documen ts, such as t he annua l r epo r t , we re no t cove red i n t he aud i t . These i nc l ude a l l o r pa r t o f t he o rgan i sa t i on p ro f i l e (GR I d i sc losu res 2 .1 to 2 .10 ) , co rpo ra te s t r uc tu re and co rpo ra te f i nanc i a l and economic pe r fo rmance, r i sk managemen t , t echn i ca l desc r i p t i ons and f i gu res o f bu i l d i ngs, equ ipmen t and p roduc t i on p rocesses. F i na l l y, È re -S d id no t assu re t he CSR repo r t f o r GR I app l i ca t i on l eve l check .

Independence:

Ère-S has been engaged by CDL to rev i ew the e l emen ts o f i t s Sus ta i nab i l i t y Repo r t and was no t r espons ib l e fo r any p r i o r wo rk on t he repo r t . The ac t i v i t y o f È re -S i s i ndependen t t o CDL and con ta i ns no o the r f i nanc i a l i n t e res t i n t he bus i ness ope ra t i on o f CDL.

jean-Pierre Dalla Palma, Director May 27, 2009

Ère-S i s a consu l t i ng company spec i a l i sed i n bus i ness sus ta i nab i l i t y and p rov ides se r v i ces i n t he doma ins

o f CSR s t r a tegy des ign and imp lemen ta t i on , s t akeho lde r engagemen t , sus ta i nab i l i t y r epo r t i ng and t r a i n i ng.

This report may contain forward-looking statements that involve assumptions, r isks and uncertaint ies. Actual future performance, outcomes and results may differ material ly from those expressed in forward-looking statements as a result of a number of r isks, uncertaint ies and assumptions. Representat ive examples of these factors include (without l imitat ion) general industry and economic condit ions, interest rate trends, cost of capital and capital avai labi l i ty, avai labi l i ty of real estate propert ies, competit ion from other developments or companies, shifts in customer demands, customers and partners, expected levels of occupancy rate, property rental income, charge out col lect ions, changes in operating expenses ( including employee wages, benefits and training costs), governmental and publ ic pol icy changes and the continued avai labi l i ty of f inancing in the amounts and the terms necessary to support future business. You are cautioned not to place undue rel iance on these forward-looking statements, which are based on the current view of management on future events.

Publ ished by City Developments Limited.

Company registrat ion number: 196300316Zwww.cdl.com.sg MICA (P) 138/06/2009This report is printed on environmental ly-fr iendly paper.

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